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The Impact of Legalized Casino Gambling on Crime

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  • Nichols, Mark W.

    (University of Nevada, Reno)

  • Tosun, Mehmet S.

    (University of Nevada, Reno)

Abstract

We examine the impact of legalized casino gambling, including Indian casinos, on crime. Using county-level data between 1994 and 2009, the impact that casino legalization had on crime is examined. Our results show an increase in crime associated with casinos in some circumstances, but not others. Crime impact results are quite sensitive to data, sample periods and econometric specifications. In addition to known Part 1 offenses (assault, burglary, larceny, robbery, rape, and auto theft), we also examine various arrest classifications, including driving under the influence (DUI), fraud, and prostitution. Again, casinos are associated with a statistically significant increase in some circumstances but not in others, with results depending on econometric specification. In no circumstances, however, are casinos and crime significantly negatively correlated.

Suggested Citation

  • Nichols, Mark W. & Tosun, Mehmet S., 2013. "The Impact of Legalized Casino Gambling on Crime," IZA Discussion Papers 7299, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp7299
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    Cited by:

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    2. Juin-Jen Chang & Ching-Chong Lai & Ping Wang, 2017. "A Tale of Two Cities: Cross-Border Casino Competition Between Detroit and Windsor," NBER Working Papers 23969, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    casino gambling; crime;

    JEL classification:

    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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