Public policy and the displacement effects of casinos: A case study of riverboat gambling in Missouri

Donald Siegel, Gary Anders

Research output: Contribution to journalArticle

24 Citations (Scopus)

Abstract

A critical issue in assessing the economic impact of casinos is whether gambling activity displaces consumer expenditure from conventional retail establishments. We test this hypothesis using industry-level, time series data for eleven counties in Missouri, a state that recently introduced riverboats. Our results are generally inconsistent with the displacement hypothesis. However, we do find evidence of substitution between gambling and other businesses in the entertainment and amusement sector. This conclusion lends credence to the view that gaming serves as a substitute for other forms of entertainment. Our results also imply that the search for displacement should probably be focused on activities that constitute the closest consumer substitutes. We conclude with a discussion of the policy implications for state regulation of this new source of revenue.

Original languageEnglish (US)
Pages (from-to)105-121
Number of pages17
JournalJournal of Gambling Studies
Volume15
Issue number2
DOIs
StatePublished - Jan 1 1999
Externally publishedYes

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Gambling
gambling
Public Policy
entertainment
public policy
Health Expenditures
economic impact
substitution
time series
revenue
Industry
expenditures
Economics
regulation
industry
evidence

ASJC Scopus subject areas

  • Sociology and Political Science
  • Psychology(all)

Cite this

Public policy and the displacement effects of casinos : A case study of riverboat gambling in Missouri. / Siegel, Donald; Anders, Gary.

In: Journal of Gambling Studies, Vol. 15, No. 2, 01.01.1999, p. 105-121.

Research output: Contribution to journalArticle

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