Do casinos export bankruptcy?

Abstract

This paper measures the extent to which destination resort casinos export bankruptcy back to visitors' home states. Previous literature has alluded to this possibility, but to date studies have only examined the influence of local casinos on local bankruptcy. Using various survey data, we calculate the number of visits from each state to casino resort destinations in Nevada, New Jersey, and Mississippi. We find strong evidence that states having more residents who visit out-of-state casino resorts have higher bankruptcy filings. This effect is dominant in the south, suggesting that casinos located in wealthier regions are less likely to export bankruptcy. AbstractThis paper measures the extent to which destination resort casinos export bankruptcy back to visitors' home states. Previous literature has alluded to this possibility, but to date studies have only examined the influence of local casinos on local bankruptcy. Using various survey data, we calculate the number of visits from each state to casino resort destinations in Nevada, New Jersey, and Mississippi. We find strong evidence that states having more residents who visit out-of-state casino resorts have higher bankruptcy filings. This effect is dominant in the south, suggesting that casinos located in wealthier regions are less likely to export bankruptcy.

The impact of casinos on fatal alcohol-related traffic accidents in the United States

“…While less numerous, other studies have looked at how casino introduction has impacted consumers' behavior with respect to related sectors of the local economy, such as hotels, restaurants, bars, and property values (e.g., Anders et al, 1998;Popp and Stehwien, 2002;Siegel and Anders, 1999;Wenz, 2007). Of course, other researchers have also recognized that this large increase in the presence of casinos and gambling could have important impacts on crime, bankruptcy, divorce, and other social ills (e.g., Barron et al, 2002;Curran and Scarpitti, 1991;Garrett and Nichols, 2008;Grinols and Mustard, 2006;Stitt et al, 2003;Thalheimer and Ali, 2004). However, little attention has been paid to how the introduction of casinos into a community or region impacts drinking and driving habits and their effects.…”

Personal-Bankruptcy Cycles

“…As illustrated by Figure 1 the increased use of credit cards and increased consumer debt (Durkin, 2000;White, 2007), the spread of casino gambling (Barron et al, 2002;Thalheimer and Ali, 2004;Garrett and Nichols, 2008), a reduced social stigma associated with filing for bankruptcy (Garrett, 2007), changes to state and federal bankruptcy laws (Nelson, 1999), and greater access to secured and unsecured credit (Gropp et al, 1997). …”

Personal-Bankruptcy Cycles

“…The literature on U.S. personal bankruptcy has focused on the dramatic rise in the increased use of credit cards and increased consumer debt (Durkin, 2000;White, 2007), the spread of casino gambling (Barron et al, 2002;Thalheimer and Ali, 2004;Garrett and Nichols, 2008), a reduced social stigma associated with filing for bankruptcy (Garrett, 2007), changes to state and federal bankruptcy laws (Nelson, 1999), and greater access to secured and unsecured credit (Gropp et al, 1997). …”