Gambling is a rapidly growing industry with competing private, public, and Native American tribal interests. To examine the effects of this competition, the authors outline a simple econometric model for assessing substitution between lottery games and other forms of gambling. They estimate the model to examine whether an expansion in Indian casino gaming in Arizona is associated with a decline in lottery revenues. The findings imply that there is indeed a substitution effect.
Get full access to this article
View all access options for this article.
References
1.
Anders, Gary, Donald Siegel, and Munther Yacoub. 1998. Does Indian casino gambling reduce state revenues? Evidence from Arizona. Contemporary Economic Policy16 (3): 347-355.
2.
Christiansen, Eugene M.1998. Gambling and the American economy. Annals of the American Academy of Political and Social Science556 (March): 36-52.
3.
Clotfelter, Charles T., and Philip J. Cook. 1989. Selling hope: State lotteries in America. Cambridge, MA: Harvard University Press.
4.
Eadington, William. 1995. Economic development and the introduction of casinos: Myths and realities. Economic Development Review13 (4): 51-54.
5.
Kindt, John W.1994. The economic impacts of legalized gambling activities. Drake Law Review43 (1): 51-95.
6.
Mikesell, John L.1991. Lottery expenditure in a non-lottery state. Journal of Gambling Studies7 (2): 89-98.
7.
Mikesell, John L.1994. State lottery sales and economic activity. National Tax Journal47 (1): 165-171.
8.
Mobilla, Pamela. 1992. Trends in gambling: The pari-mutuel racing industry and effect of state lotteries: A new market definition. Journal of Cultural Economics16 (2): 51-62.
9.
Siegel, Donald, and Gary Anders. 1999. Public policy and the displacement effects of casinos: A case study of riverboat gambling in Missouri. Journal of Gambling Studies15 (2): 105-121.
10.
Steinnes, Donald. 1998. Have Indian casinos diminished other gambling in Minnesota?An economic assessment based on accessibility. Mimeo.
11.
Szakmary, Andrew C., and Carol Matheny Szakmary. 1995. State lotteries as a source of revenue: A re-examination. Southern Economic Journal61 (4): 1167-1181.