Smoke-free law did not affect revenue from gaming in Delaware

Abstract

Objective: To determine the effect of the Delaware smokefree law on gaming revenue. Methods: Linear regression of gaming revenue and average revenue per machine on a public policy variable, time, while controlling for economic activity and seasonal effects. Results: The linear regression showed that the smoke-free law was associated with no effect on total revenue or average revenue per machine. Conclusion: Smoke-free laws are associated with no change in gaming revenue.

The effect of smoke-free policies on electronic gaming machine expenditure in Victoria, Australia

“…Two previous studies from the United States have analysed the impact of smoke-free policies on gaming machine expenditure and the conclusions were mixed. Mandel et al 3 found no significant effect of the smoke-free law in three gambling venues in Delaware, USA; however, Pakko4 found a significant decrease in revenue when analysing the same data but with different model specifications. Another study from the United States found no effect of the smoke-free policy on profits from bingo and charitable gaming in Massachusetts, USA 5…”

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

“…See also the 'Erratum' subsequently published in Tobacco Control(Glantz and Alamar, 2005). 2 Losses associated with the Delaware smoke-free law are also suggested by Dover Downs (2004a, b) andMarcel (2004).Applied Economics ISSN 0003-6846 print/ISSN 1466-4283 online ß 2008 Taylor & Francis…”

“…6 The trend terms are based on the variable TIME, specified as t*100. As cited by Mandel et al (2005), the inclusion of a quadratic trend specification is intended to account for the slowdown naturally associated with the maturing of the industry after a period of rapid initial growth; moreover, it is supported by the data. 7 The number of terminals is limited by Delaware law, providing a degree of exogeneity to this supply-side variable.…”

“…After examining the raw data on statewide net proceeds for the Delaware 'racinos', Mandel et al (2005) concluded that there was no statistically significant effect of the smoking ban. 1 In a subsequent response, Pakko (2006) found that after correcting for data errors and using a more robust estimation methodology, the model used in Mandel et al revealed a significant decline in revenues.…”

Do Smoking Bans Always Hurt the Gaming Industry? Differentiated Impacts on the Market Value of Casino Firms in Macao

“…In the US, there was an intense debate about the economic impacts of the smoking ban in New Jersey in November 2002 (Mandel et al, 2005;Pakko, 2008;Pakko, 2006;Thalheimer and Ali, 2008). Studies of the Illinois smoking ban of 2008 found that the revenue decline of Illinois casinos after 2008 was due to a coincidence of economic recession (Harris et al, 2012).…”