Working Paper: NBER ID: w11234
Authors: Melissa S. Kearney
Abstract: This paper reviews the government role in the legalized gambling sector and addresses some of the major issues relevant to any normative analysis of what the government role should be. In particular, the paper reviews evidence identifying the economic "winners" and "losers" associated with the three largest sectors of the industry: commercial casinos, state lotteries, and Native American casinos. The paper also includes a discussion of the growing internet gambling industry. In addition to reviewing existing literature and evidence, the paper raises relevant questions and policy issues that have not yet been adequately addressed in the economics literature.
Keywords: Legalized Gambling; Economic Impact; Public Policy
JEL Codes: H2; H3; H7
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Opening of Indian casinos in a county (L83) | Increase in jobs per adult (J89) |
| Availability of casino gambling (L83) | Reduction in county-level mortality rates (I14) |
| Introduction of casinos (L83) | Increase in bankruptcy rates (K35) |
| Introduction of casinos (L83) | Increase in violent crimes in surrounding communities (K42) |
| Introduction of casinos (L83) | Increase in crime rates (K42) |