Examining the Impact of Casinos on Economic Development: A Spatial Analysis of the Counties in the Mid-Atlantic Region

Abstract

Few have formally evaluated the economic impact of casinos, and yet most agree that it is crucial in estimating the net benefit to society. A new casino investment should stimulate economic activity in the immediate region, but its operations could potentially reduce employment and incomes with in the industry. Grinols outlines the factors that could lead to positive or negative growth from the investment, but what is critical to the empirical validation of the investment is the definition of region. Since data is geographically limited to political boundaries, it is necessary to employ a spatial methodology that captures the impact beyond the political boundary. The Spatial Durbin Model (SDM) is outline. The SDM captures both the local impacts and spillovers in the region and it can also identify if the casino competes or complements within their sectors. Income per capita and employment measurements for the county and the retail sector were examined. The evidence indicates that casinos raises per capita income in urban areas, but lowers per capita income in rural areas, while employment has significant gains in private employment, total employment, and retail employment. The gains in both income and employment erode overtime.

The impact of casino proximity on northeast urban communities: a literature review

“…Resort-style casinos are also known as destination casinos because they are in destinations or major casino markets such as Atlantic City, Connecticut, and Las Vegas. Hence, destination casinos offer full-service amenities: hotel accommodations, spas, dining options, entertainment options, and several gaming options, including live dealers (American Casino Guide, n.d.; Economopoulos, 2015). Some resort-style casinos like the tribal Mohegan Sun and Foxwoods casinos are not classified as commercial casinos even though they provide full-scale amenities.…”

The effects of casino proximity and time on poverty levels in New York City

“…Originating in Las Vegas in 1931, then onto Atlantic City in 1978 before moving into other rural areas, casinos were typically destinations for many out-of-town patrons or tourists. Traditional destination-style casinos offer full-service amenities, such as several restaurants, nightclubs, spas, and many gaming options ranging from slot machines to dealer table games (American Casino Guide, n.d.;Economopoulos, 2015). In contrast, urban casinos are hosted by major metropolitan cities, offer limited amenities, and provide minimal amenities.…”

Older Adults’ Casino Gambling Behavior and Their Attitudes Toward New Casino Development

“…Much of the research on new casinos focuses upon their impact on the wider community. Studies have examined what social problems coincide with the opening of a new casino (Hann & Nuffield, 2005; Williams, Rehm, & Stevens, 2011) including how casinos impact crime in the community (Humphreys & Soebbing, 2014; Stitt, Nichols, & Giacopassi, 2003) and the economic impact of casinos (Economopoulos, 2015; Wenz, 2014). There is also a body of research on the effect of casinos, and new casinos, on gambling participation and problem gambling within communities (Adams, Sullivan, Horton, Menna, & Guilmette, 2007; Conway, 2015; Dalton et al., 2012; Govoni, Frisch, Rupcich, & Getty, 1998; Hann & Nuffield, 2005; Jacques & Ladouceur, 2006; Room, Turner, & Ialomiteanu, 1999; Toneatto, Ferguson, & Brennan, 2003; Welte, Wieczorek, Barnes, Tidwell, & Hoffman, 2004; Williams et al., 2011).…”