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Urban Location And The Success Of Casinos In Five States

Author

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  • Thomas E. Lambert
  • Arun Kumar Srinivasan
  • Uric B. Dufrene
  • Hokey Min

Abstract

Over the last 30 years or so, many states in the US have legalized casino gambling/gaming in an effort to boost tax revenues. Four mid-western (Illinois, Indiana, Iowa, and Missouri) and two southern (Louisiana and Mississippi) states adopted legalized gaming in the form of riverboat casinos due to legal restrictions originally against land-based casinos. Following changes in state laws, land-based casinos and racinos (a combination of a casino and a racetrack) have since appeared in these states, although riverboat casinos still compose the majority of the establishments in most of these states. Although the scholarly literature is replete with articles on whether casinos make a difference in state tax revenues or cause an increase in crime, bankruptcies or other negative externalities, few if any have been written about the efficiency and effectiveness of casino operations and what external factors (location, size of market, etc.) are important to casino success. With so many states relying on casino revenues and others recently enacting or trying to permit casino gaming, it would be desirable to know those factors which influence casino success. Tax dollars often hinge on the type of casino permitted and related location decisions. Hence, such decisions have public policy implications, and this article is the first to pinpoint factors that determine casino success.

Suggested Citation

  • Thomas E. Lambert & Arun Kumar Srinivasan & Uric B. Dufrene & Hokey Min, 2010. "Urban Location And The Success Of Casinos In Five States," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 3(3), pages 1-16.
    • Handle: RePEc:ibf:ijmmre:v:3:y:2010:i:3:p:1-16
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    References listed on IDEAS

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    1. Thomas E. Lambert & Peter B. Meyer, 2006. "Ex-Urban Sprawl as a Factor in Traffic Fatalities and EMS Response Times in the Southeastern United States," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(4), pages 941-953, December.
    2. J. F. Nolan & P. C. Ritchie & J. R. Rowcroft, 2001. "Measuring efficiency in the public sector using nonparametric frontier estimators: a study of transit agencies in the USA," Applied Economics, Taylor & Francis Journals, vol. 33(7), pages 913-922.
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    4. William R. Eadington, 1999. "The Economics of Casino Gambling," Journal of Economic Perspectives, American Economic Association, vol. 13(3), pages 173-192, Summer.
    5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
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    7. Garrett, Thomas A. & Nichols, Mark W., 2008. "Do casinos export bankruptcy?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1481-1494, August.
    8. Lambert, Thomas & Meyer, Peter, 2008. "New and fringe residential development and emergency medical services response times in the United States," MPRA Paper 38891, University Library of Munich, Germany.
    9. Madhusudhan, Ranjana G., 1996. "Betting on Casino Revenues: Lessons From State Experiences," National Tax Journal, National Tax Association;National Tax Journal, vol. 49(3), pages 401-412, September.
    10. Hokey Min & Hyesung Min & Seong Jong Joo & Joungman Kim, 2008. "A Data Envelopment Analysis for establishing the financial benchmark of Korean hotels," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 4(2), pages 201-217.
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    Cited by:

    1. Arun K. Srinivasan & Thomas E. Lambert, 2017. "The Impact of Stagnating Casino Revenues on State and Local Governments Tax Receipts," Public Budgeting & Finance, Wiley Blackwell, vol. 37(1), pages 26-46, March.
    2. Justus Haucap & Radivoje Nedic & Talha Şimşek, 2023. "Regulatory objectives vs fiscal interests: Are German casino locations motivated by beggar-thy-neighbor policy? An empirical analysis," European Journal of Law and Economics, Springer, vol. 55(2), pages 291-311, April.
    3. Srinivasan, Arun & Lambert, Thomas, 2015. "The Impact of Stagnating Casino Revenues on State and Local Tax Receipts," MPRA Paper 69738, University Library of Munich, Germany.

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    More about this item

    Keywords

    Casinos; data envelopment analysis; gaming and gambling; urban economics;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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