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No smoking at the slot machines: the effect of a smoke-free law on Delaware gaming revenues

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  • Michael R. Pakko

Abstract

As communities around the nation consider laws restricting smoking in public places, a key political and economic issue that often arises is the effect that such laws have on the sales and profits of particular sectors. The gaming industry has been active in opposition to such ordinances, citing large prospective losses. This article analyzes the revenues of three gaming facilities in Delaware following the implementation of a smoke-free law in December 2002. Revenues are found to have declined significantly at each of the three facilities, with relative magnitudes of losses corresponding to the availability of alternative gaming venues in the region.

Suggested Citation

  • Michael R. Pakko, 2005. "No smoking at the slot machines: the effect of a smoke-free law on Delaware gaming revenues," Working Papers 2005-054, Federal Reserve Bank of St. Louis.
    • Handle: RePEc:fip:fedlwp:2005-054
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    References listed on IDEAS

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    1. Halvorsen, Robert & Palmquist, Raymond, 1980. "The Interpretation of Dummy Variables in Semilogarithmic Equations," American Economic Review, American Economic Association, vol. 70(3), pages 474-475, June.
    2. 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.
    3. Michael R. Pakko, 2005. "Smoke-free law did affect revenue from gaming in Delaware," Working Papers 2005-028, Federal Reserve Bank of St. Louis.
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    Cited by:

    1. Zhang, Yihao & Chen, Fang & Huang, Jian & Shenoy, Catherine, 2019. "Hot money flows and production uncertainty: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 57(C).
    2. 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.
    3. Zhang, Jing Hua & Tam, Kwo Ping & Zhou, Nan, 2016. "Do smoking bans always hurt the gaming industry? Differentiated impacts on the market value of casino firms in Macao," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-32.
    4. Kathryn L. Combs & Jaebeom Kim & Jim Landers & John A. Spry, 2016. "The Responsiveness of Casino Revenue to the Casino Tax Rate," Public Budgeting & Finance, Wiley Blackwell, vol. 36(3), pages 22-44, September.
    5. Kvasnicka, Michael & Tauchmann, Harald, 2012. "Much ado about nothing? Smoking bans and Germany's hospitality industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 44(35), pages 4539-4551.
    6. Bree L. Dority & Mary G. Mcgarvey & Eric C. Thompson & Jyothsna Sainath, 2013. "Local And Statewide Smoke-Free Laws In Nebraska: The Effects On Keno Establishments," Contemporary Economic Policy, Western Economic Association International, vol. 31(3), pages 549-564, July.
    7. Thomas A. Garrett & Michael R. Pakko, 2009. "Casino revenue and the Illinois smoking ban," Working Papers 2009-027, Federal Reserve Bank of St. Louis.
    8. Sijbren Cnossen & D. Forrest & S. Smith, 2009. "Taxation and regulation of smoking, drinking and gambling in the European Union," CPB Special Publication 76.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    9. William T. Gavin & Benjamin D. Keen & Michael R. Pakko, 2012. "Taylor-type rules and total factor productivity," Review, Federal Reserve Bank of St. Louis, vol. 94(Jan), pages 41-64.
    10. Pryce, Robert, 2019. "The effect of the United Kingdom smoking ban on alcohol spending: Evidence from the Living Costs and Food Survey," Health Policy, Elsevier, vol. 123(10), pages 936-940.
    11. Michael R. Pakko, 2008. "The economic impact of a smoking ban in Columbia, Missouri: an analysis of sales tax data for the first year," Regional Economic Development, Federal Reserve Bank of St. Louis, issue Oct, pages 30-40.
    12. Sijbren Cnossen, 2006. "Alcohol taxation and regulation in the European Union," CPB Discussion Paper 76.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    13. Zhang, Jing Hua & Tam, Kwo Ping & Zhou, Nan, 2016. "Do smoking bans always hurt the gaming industry? Differentiated impacts on the market value of casino firms in Macao (China)," Economics Discussion Papers 2016-21, Kiel Institute for the World Economy (IfW Kiel).

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    Keywords

    Tobacco industry; Gambling industry;

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