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Problems in Quantifying the Social Costs and Benefits of Gambling

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  • Douglas M. Walker

Abstract

. As casinos and other forms of gambling spread across the United States, voters and policymakers are becoming increasingly interested in the potential costs and benefits from expansion in gambling industries. Since the mid‐1990s, a variety of cost‐benefit research has been published, much of it using flawed methodologies. This paper examines some of the most important areas of debate and disagreement among gambling researchers, and explains why the quantification of the costs and benefits of gambling is problematic.

Suggested Citation

  • Douglas M. Walker, 2007. "Problems in Quantifying the Social Costs and Benefits of Gambling," American Journal of Economics and Sociology, Wiley Blackwell, vol. 66(3), pages 609-645, July.
    • Handle: RePEc:bla:ajecsc:v:66:y:2007:i:3:p:609-645
    DOI: 10.1111/j.1536-7150.2007.00529.x
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    References listed on IDEAS

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    2. repec:bla:jindec:v:50:y:2002:i:3:p:237-63 is not listed on IDEAS
    3. Earl L. Grinols & David B. Mustard, 2001. "Business profitability versus social profitability: evaluating industries with externalities, the case of casinos," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 143-162.
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    6. Grinols,Earl L., 2004. "Gambling in America," Cambridge Books, Cambridge University Press, number 9780521830133, September.
    7. John Warren Kindt, 2001. "The costs of addicted gamblers: should the states initiate mega-lawsuits similar to the tobacco cases?," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 17-63.
    8. Scherer, F M, 1979. "The Welfare Economics of Product Variety: An Application to the Ready-to-Eat Cereals Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 28(2), pages 113-134, December.
    9. William R. Eadington, 1999. "The Economics of Casino Gambling," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 173-192, Summer.
    10. Alex Blaszczynski & Robert Ladouceur & Annie Goulet & Cathy Savard, 2006. "‘How Much Do You Spend Gambling?’: Ambiguities in Questionnaire Items Assessing Expenditure," International Gambling Studies, Taylor & Francis Journals, vol. 6(2), pages 123-128.
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    Cited by:

    1. Annunziata de Felice & Isabella Martucci, 2017. "Gambling as a Restraint to the Italian Economy," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 7(1), pages 1-5.
    2. Amir Borges Ferreira Neto & Collin D. Hodges & Hyunwoong Pyun, 2016. "Voting Dynamics and the Birth of State-owned Casinos in Kansas," Economics Bulletin, AccessEcon, vol. 36(1), pages 329-336.
    3. Karl R. Geisler & Mark W. Nichols, 2016. "Riverboat casino gambling impacts on employment and income in host and surrounding counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 56(1), pages 101-123, January.
    4. Jonathan Wiley & Douglas Walker, 2011. "Casino Revenues and Retail Property Values: The Detroit Case," The Journal of Real Estate Finance and Economics, Springer, vol. 42(1), pages 99-114, January.
    5. Orazi, Davide C. & Lei, Jing & Bove, Liliana L., 2015. "The nature and framing of gambling consequences in advertising," Journal of Business Research, Elsevier, vol. 68(10), pages 2049-2056.
    6. Falls, Gregory A. & Thompson, Philip B., 2014. "Casinos, casino size, and crime: A panel data analysis of Michigan counties," The Quarterly Review of Economics and Finance, Elsevier, vol. 54(1), pages 123-132.
    7. Brad R. Humphreys & Brian P. Soebbing, 2014. "Access to Legal Gambling and the Incidence of Crime: Evidence from Alberta," Growth and Change, Wiley Blackwell, vol. 45(1), pages 98-120, March.
    8. Alessandro Gandolfo & Valeria De Bonis, 2014. "Motivations for gambling and the choice between skill and luck gambling products: an exploratory study," Discussion Papers 2014/185, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    9. Douglas M. Walker, 2008. "Do Casinos Really Cause Crime?," Econ Journal Watch, Econ Journal Watch, vol. 5(1), pages 4-20, January.
    10. Bruce Gilley, 2017. "Technocracy and democracy as spheres of justice in public policy," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(1), pages 9-22, March.
    11. Elena Raptou & Konstadinos Mattas & Constantinos Katrakilidis, 2009. "Investigating Smoker's Profile: The Role of Psychosocial Characteristics and the Effectiveness of Tobacco Policy Tools," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 603-638, April.
    12. Wu, Shou-Tsung & Chen, Yeong-Shyang, 2015. "The social, economic, and environmental impacts of casino gambling on the residents of Macau and Singapore," Tourism Management, Elsevier, vol. 48(C), pages 285-298.

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