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Smoke-free law did affect revenue from gaming in Delaware

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  • Michael R. Pakko

Abstract

A paper recently published in the journal Tobacco Control purports to show that the implementation of a smoking prohibition in Delaware had no statistically significant effect on the revenues of three gaming facilities in that state. After correcting for evident errors in that analysis, I find that the smoke-free law did affect revenues from gaming in Delaware. Total gaming revenues are estimated to have declined by at least $6 million per month after the implementation of Delaware*s Clean Indoor Air Law. This represents a loss of over 12% relative to average monthly revenues in the year preceding the smoking ban.

Suggested Citation

  • Michael R. Pakko, 2005. "Smoke-free law did affect revenue from gaming in Delaware," Working Papers 2005-028, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedlwp:2005-028
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    File URL: http://research.stlouisfed.org/wp/2005/2005-028.pdf
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    1. Mandel, Lev L MSc. & Alamar, Benjamin Ph.D. & Glantz, Stanton A. Ph.D., 2005. "Smoke-free law did not affect revenue from gaming in Delaware," University of California at San Francisco, Center for Tobacco Control Research and Education qt84p029jw, Center for Tobacco Control Research and Education, UC San Francisco.
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    Cited by:

    1. Michael R. Pakko, 2006. "On the economic analysis of smoking bans," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 115-130.
    2. Michael Pakko, 2008. "No smoking at the slot machines: the effect of a smoke-free law on Delaware gaming revenues," Applied Economics, Taylor & Francis Journals, vol. 40(14), pages 1769-1774.
    3. Silvia Tiezzi, 2009. "The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings," Department of Economics University of Siena 570, Department of Economics, University of Siena.

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    Gambling industry;

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