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Casinos, Crime, and Community Costs

Author

Listed:
  • Earl L. Grinols

    (University of Illinois)

  • David B. Mustard

    (University of Georgia)

Abstract

We examine the relationship between casinos and crime using county-level data for the US between 1977 and 1996. Casinos were non-existent outside Nevada before 1978, and expanded to many other states during our sample period. Most factors that reduce crime occur before or shortly after a casino opens, while those that increase crime, including problem and pathological gambling, occur over time. The results suggest that the effect on crime is low shortly after a casino opens, and grows over time. Roughly 8 percent of crime in casino counties in 1996 was attributable to casinos, costing the average adult $75 per adult per year.

Suggested Citation

  • Earl L. Grinols & David B. Mustard, 2005. "Casinos, Crime, and Community Costs," Law and Economics 0501001, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwple:0501001
    Note: Type of Document - pdf; pages: 34
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    References listed on IDEAS

    as
    1. Grinols,Earl L., 2004. "Gambling in America," Cambridge Books, Cambridge University Press, number 9780521830133, October.
    2. Ian Ayres & Steven D. Levitt, 1998. "Measuring Positive Externalities from Unobservable Victim Precaution: An Empirical Analysis of Lojack," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(1), pages 43-77.
    3. Levitt, Steven D, 1998. "Why Do Increased Arrest Rates Appear to Reduce Crime: Deterrence, Incapacitation, or Measurement Error?," Economic Inquiry, Western Economic Association International, vol. 36(3), pages 353-372, July.
    4. William N. Evans & Julie H. Topoleski, 2002. "The Social and Economic Impact of Native American Casinos," NBER Working Papers 9198, National Bureau of Economic Research, Inc.
    5. Mocan, H Naci & Gittings, R Kaj, 2003. "Getting Off Death Row: Commuted Sentences and the Deterrent Effect of Capital Punishment," Journal of Law and Economics, University of Chicago Press, vol. 46(2), pages 453-478, October.
    6. Grogger, Jeff, 1998. "Market Wages and Youth Crime," Journal of Labor Economics, University of Chicago Press, vol. 16(4), pages 756-791, October.
    7. H. Naci Mocan & R. Kaj Gittings, 2001. "Pardons, Executions and Homicide," NBER Working Papers 8639, National Bureau of Economic Research, Inc.
    8. Barbara A. Lee & James Chelius, 1989. "Government Regulation of Labor-Management Corruption: The Casino Industry Experience in New Jersey," ILR Review, Cornell University, ILR School, vol. 42(4), pages 536-548, July.
    9. Ricardo C. Gazel & Dan S. Rickman & William N. Thompson, 2001. "Casino gambling and crime: a panel study of Wisconsin counties," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 22(1-3), pages 65-75.
    10. David B. Mustard, 2003. "Reexamining Criminal Behavior: The Importance of Omitted Variable Bias," The Review of Economics and Statistics, MIT Press, vol. 85(1), pages 205-211, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Crime; Casinos; Social Costs; Problem and Pathological Gambling;
    All these keywords.

    JEL classification:

    • K - Law and Economics

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