THE REGIONAL ECONOMIC IMPACTS OF CASINO GAMBLING:
ASSESSMENT OF THE LITERATURE AND ESTABLISHMENT OF A RESEARCH AGENDA
by
Adam Rose and Associates
501 Toftrees Avenue
State College, PA 16803
Prepared for
National Gambling Impact Study Commission
800 North Capitol Street, NW
Suite 450
Washington, DC 20002
Final Draft
2
November 5, l998
TABLE OF CONTENTS
EXECUTIVE SUMMARY
i
I.
INTRODUCTION
1
A. Purpose
1
B. Background
2
II. SCOPE AND ESSENCE OF CASINO IMPACTS
3
III. METHODOLOGICAL APPROACHES
6
IV. OVERVIEW OF IMPACT STUDIES
8
V. META-ANALYSIS
10
VI. SUMMARY OF FINDINGS
12
VII. SUGGESTIONS FOR FUTURE RESEARCH
20
A. Guidelines for Future Studies
20
B. Agenda for Future Research
20
VIII. CONCLUSION
22
REFERENCES
25
THE REGIONAL ECONOMIC IMPACTS OF CASINO GAMBLING:
ASSESSMENT OF THE LITERATURE AND ESTABLISHMENT OF A RESEARCH AGENDA
by
Adam Rose, Ph.D.
EXECUTIVE SUMMARY
This report was sponsored by the National Gambling Impact Study Commission to assess the
many studies on the economic impacts of casino gambling/gaming. This assessment includes: a) an
itemization of many considerations affecting economic impacts, b) an evaluation of formal impact
analysis modeling approaches, c) a detailed review of important features of 36 major studies, d) a meta-
analysis of causal determinants, e) a point-by-point summary of findings, f) a set of guidelines for future
studies, and g) a research agenda to close the knowledge gap.
Economic theory and the preponderance of evidence indicate that the aggregate direct and
indirect impacts of the construction, operation, and taxation of casinos are significantly positive.
Broader economic costs relating to such factors as the use of government services and changes in
property values are not insignificant, but they do not come close to canceling out the more conventional
output, income, and employment gains. Moreover, these broader negative impacts might be offset by
some longer-term positive impacts stemming from increased spending of tax revenue on educ