The demand for slot machine and pari-mutuel horse race wagering at a racetrack-casino

Thalheimer, Richard

doi:10.1080/00036846.2010.537645

Cited by 7 publications

(10 citation statements)

References 29 publications

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“…All three studies on this topic found cannibalization (Thalheimer, 1998(Thalheimer, , 2008(Thalheimer, , 2012. According to this evidence, EGMs at race tracks reduced pari-mutuel betting by over 20% (Thalheimer, 1998(Thalheimer, , 2012, while the combined effects of various relaxations on EGM regulations at race tracks reduced the pari-mutuel handle by 49% (Thalheimer, 2008).…”

Section: Egmsmentioning

confidence: 93%

“…Studies have been conclusive and evidence suggests that the presence of pari-mutuel racing, live or simulcast, increases EGM gambling (Thalheimer, 1998(Thalheimer, , 2008(Thalheimer, , 2012. One study (Thalheimer & Ali, 2003) found a negative impact on EGM revenue, but the relationship was statistically insignificant.…”

Section: Pari-mutuel or Race Bettingmentioning

confidence: 99%

“…We found seven studies that dealt directly with the issue of casinos cannibalizing horse racing and one study that dealt with the impacts of introducing casino games at the race tracks to create racinos (race tracks with casino games), four of which found substitution (Ali & Thalheimer, 1997;Ray, 2001;Thalheimer, 2012;Walker & Jackson, 2008). Evidence from New Jersey (Ali & Thalheimer, 1997) estimated that the level of cannibalization is about 32%, and a study on racinos (Thalheimer, 2012) estimated that pari-mutuel wagering fell by 16% after the introduction of casino table games at the venue.…”

Section: /4mentioning

confidence: 99%

“…The three remaining studies considered the impact of EGMs on table games at the same venue (Thalheimer, 2012;Thalheimer & Ali, 2003. These studies found substitution in EGM revenue and wagering of about 10% following the introduction of or in the presence of table games.…”

Section: /4mentioning

confidence: 99%

“…Evidence from New Jersey (Ali & Thalheimer, 1997) estimated that the level of cannibalization is about 32%, and a study on racinos (Thalheimer, 2012) estimated that pari-mutuel wagering fell by 16% after the introduction of casino table games at the venue. Two studies found no impact (Prybylski, Felsenstein, Freeman, & Littlepage, 1998;Siegel & Anders, 2001), but the study by Prybylski et al (1998) concluded that there was no impact because the pari-mutuel industry financially benefits from riverboat casinos, not because casinos would not substitute for parimutuel markets.…”

Section: /4mentioning

confidence: 99%

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Market Cannibalization Within and Between Gambling Industries: A Systematic Review

Marionneau

Nikkinen

2017

JGI

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In economics, cannibalization refers to a process in which a new product or service partly or completely substitutes for those in existing markets. This systematic review analyses the existing evidence on cannibalization within gambling markets to determine whether such substitution takes place between different types of gambling. The analysis shows that new gambling products substitute to a certain extent for existing gambling products. The sector in which the evidence is most convincing is the casino industry, which cannibalizes lotteries and pari-mutuel racing. There is also evidence that casinos substitute for other casinos and for non-casino electronic gaming machines. Lotteries substitute for casinos, other lotteries, sports betting, and pari-mutuel or racing industries. In other cases, the evidence is less conclusive and sometimes non-existent, or industry relationships are more complicated. This review also found that even in cases where substitution does occur, it is incomplete, and thus the introduction of new products tends to expand the overall gambling market. We discuss these market dynamics and identify gaps in the available research.Keywords: gambling, cannibalization, substitutionary effects, economic impacts, review RésuméEn économie, on entend par cannibalisation un processus par lequel un nouveau produit ou service se substitue partiellement ou complètement à des produits ou services existants. Cet examen systématique analyse les données dont on dispose sur la cannibalisation dans les marchés du jeu pour déterminer si une telle substitution a lieu entre différents types de jeux de hasard. L'analyse montre que les nouveaux produits de jeux de hasard remplacent, dans une certaine mesure, certains produits de jeu existants. La preuve la plus convaincante est celle portant sur le secteur du casino qui cannibalise les loteries et les courses de pari mutuel. Il est également

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