The inelastic demand for wagering

Pescatrice, Donn R.

doi:10.1080/00036848000000010

Cited by 20 publications

(4 citation statements)

References 2 publications

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“…Initial research on wagering demand focused on the effect of the change in the price of a wager (track takeout) using time series data where takeout rates change over time to calculate the price elasticity of demand. Most studies find that the takeout rate is elastic, indicating that lowering the takeout would increase revenue (Gruen 1976; Suits 1979; Pescatrice 1980; Morgan and Vasche 1982; Thalheimer and Ali 1992). 2 Thalheimer and Ali (1995) undertake a time series analysis to find determinants of demand using tracks in Kentucky and Ohio.…”

Section: Introductionmentioning

confidence: 99%

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What Do Bettors Want? Determinants of Pari‐Mutuel Betting Preference

Gramm

McKinney

Owens

et al. 2007

American J Econ Sociol

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This paper is an analysis of the demand for thoroughbred racetrack wagers, examining evidence that would support the existence of two types of bettors: the risk-averse informed bettor versus the uninformed bettor. Looking at 12 major racetracks over the fall of 2002, we undertake an empirical examination of the determinants of bettors' preferences for particular wagers on specific races. The goal is to try to determine what individual aspects of a race (conditions, surface, participants, etc.) will encourage increased wagering dollars. With the advent of simulcasting, the competition for the wagering dollar is fierce, as the bettor can choose from more than 100 races daily, each race offering numerous betting options. We find for most wagers that higher quality participants, larger and more competitive fields, and turf races increase betting volume while higher pari-mutuel takeout, poor track conditions, and other races run concurrently reduce volume. However, more competitive fields reduce betting volume in the show and trifecta pools. Optimal field size is determined to be between 10 and 12 betting interests. Overall, we find support for the existence of a significant share of risk-averse informed bettors.

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Section: Introductionmentioning

confidence: 99%

“…2 2 Pescatrice (1980) estimates an inelastic demand for wagers, but his study is refuted by Morgan and Vasche (1982), who point out specification problems in the Pescatrice study resulting in an underestimation of elasticity. …”

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confidence: 99%

What Do Bettors Want? Determinants of Pari‐Mutuel Betting Preference

Gramm

McKinney

Owens

et al. 2007

American J Econ Sociol

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“…Several articles have looked at the demand for pari-mutuel racing and government revenues from racing in general (including horse racing) and at the greyhound industry in particular. Studies of horse racing handle and the demand for pari-mutuel horse racing include: Pescatrice (1980a), Ray (1991), Thalheimer (1998), and Thalheimer and Ali (1995a, 1995b, 1997. Studies of government revenue from pari-mutuel racing include: Pescatrice (1979Pescatrice ( , 1980b and Guthrie (1981).…”

Section: Literaturementioning

confidence: 99%

How Much on that Doggie at the Window? An Analysis of the Decline in Greyhound Racing Handle

Ray¹

2001

Review of Regional Studies

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In recent years, considerable attention has been given to the role of legalized gambling in regional economic development. Evidence of the effectiveness of legalized gambling activities in causing economic growth has led to its expansion in the United States. This paper looks at the greyhound parimutuel racing industry to determine the factors affecting the handle (total amount of money bet legally at pari-mutuel tracks) on greyhound races (live and off-track/ intertrack). Identifying these factors is necessary for the industry and public policy makers to address the decline in greyhound racing wagering throughout the 1990s and the associated reversal in economic growth.

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“…Studies on win percentage of pari‐mutuel horse betting include Gruen (), Suits (), and Pescatrice (). Studies on win percentage of lotteries include DeBoer (), Gulley and Scott (), Farrell and Walker (), Farrell et al (), Forrest, Gulley, and Simmons (), Beenstock and Haitovsky (), Yu (), Combs and Spry (), and Combs, Crowley, and Spry ().…”

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confidence: 99%

The Responsiveness of Casino Revenue to the Casino Tax Rate

Combs

Kim

Landers³

et al. 2016

Public Budgeting & Finance

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This paper examines the tax base elasticity of the regulated casino industry in Illinois to help estimate state-level revenue impacts of casino tax rate changes. Illinois' shift to a graduated rate schedule increased the highest marginal tax rate on casino adjusted gross receipts (AGR) from 20 percent to 70 percent before reverting to a 50 percent rate. We construct a state-level casino tax rate variable, which is a statewide average for each month of the marginal casino tax rate facing each casino. We find that a 1 percent increase in this state-level casino tax rate decreases overall Illinois casino AGR by around 1.1 percent.

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The inelastic demand for wagering

Cited by 20 publications

References 2 publications

What Do Bettors Want? Determinants of Pari‐Mutuel Betting Preference

What Do Bettors Want? Determinants of Pari‐Mutuel Betting Preference

How Much on that Doggie at the Window? An Analysis of the Decline in Greyhound Racing Handle

The Responsiveness of Casino Revenue to the Casino Tax Rate

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