Urban Location and the Success of Casinos in Five States

International Journal of Management and Marketing Research, Vol. 3, No. 3, pp. 1-16, 2010

16 Pages Posted: 8 Jul 2011

See all articles by Thomas E. Lambert

Thomas E. Lambert

University of Louisville

Arun K. Srinivasan

Indiana University Southeast - School of Business

Uric Dufrene

Indiana University Southeast

Hokey Min

affiliation not provided to SSRN

Date Written: 2010

Abstract

Over the last 30 years or so, many states in the US have legalized casino gambling/gaming in an effort to boost tax revenues. Four mid-western (Illinois, Indiana, Iowa, and Missouri) and two southern (Louisiana and Mississippi) states adopted legalized gaming in the form of riverboat casinos due to legal restrictions originally against land-based casinos. Following changes in state laws, land-based casinos and racinos (a combination of a casino and a racetrack) have since appeared in these states, although riverboat casinos still compose the majority of the establishments in most of these states. Although the scholarly literature is replete with articles on whether casinos make a difference in state tax revenues or cause an increase in crime, bankruptcies or other negative externalities, few if any have been written about the efficiency and effectiveness of casino operations and what external factors (location, size of market, etc.) are important to casino success. With so many states relying on casino revenues and others recently enacting or trying to permit casino gaming, it would be desirable to know those factors which influence casino success. Tax dollars often hinge on the type of casino permitted and related location decisions. Hence, such decisions have public policy implications, and this article is the first to pinpoint factors that determine casino success.

Keywords: Casinos, data envelopment analysis, gaming and gambling, urban economics

Suggested Citation

Lambert, Thomas E. and Srinivasan, Arun K. and Dufrene, Uric and Min, Hokey, Urban Location and the Success of Casinos in Five States (2010). International Journal of Management and Marketing Research, Vol. 3, No. 3, pp. 1-16, 2010, Available at SSRN: https://ssrn.com/abstract=1880146

Thomas E. Lambert (Contact Author)

University of Louisville ( email )

Economics Dept.
Louisville, KY 40292

Arun K. Srinivasan

Indiana University Southeast - School of Business ( email )

4201 Grant Line Road
New Albany, IN 47150
United States
812-941-2067 (Phone)

HOME PAGE: http://homepages.ius.edu/asriniva

Uric Dufrene

Indiana University Southeast ( email )

New Albany, IN 47150
United States

Hokey Min

affiliation not provided to SSRN ( email )

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