Review of Industrial Organization

, Volume 13, Issue 6, pp 713–726 | Cite as

The Impact of Deregulation on Casino Win in Atlantic City

  • Mark W. Nichols
Article

Abstract

This paper examines the impact of deregulation on thedemand for casino gaming in Atlantic City. Specifically, the paper analyzes the impact ofexpanded operating hours and floor space devoted toslot machines. Using monthly win data between June1978 and July 1996, the analysis reveals that expandedfloor space had a significant, positive impact on win,resulting in an average monthly increase of over \$2million. This shows the importance of developing aregulatory structure rigid enough to ensure thehonesty and integrity of the gaming industry, butflexible enough to allow management to respond tochanging market conditions.

Casino win (gross gaming revenue) Atlantic City deregulation 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Benston, George J. (1985) 'The Validity of Profits-Structure Studies with Particular Reference to the FTC's Line of Business Data', American Economic Review, 75, 37-67.Google Scholar
  2. Box, G. E. P. and G. M. Jenkins (1976) Time Series Analysis: Forecasting and Control. San Francisco, CA: Holden Day.Google Scholar
  3. Cabot, Anthony (1996) Casino Gaming: Regulation, Economics, and Public Policy. Las Vegas, NV: Trace Publications.Google Scholar
  4. Casiello, Nicholas (1993) 'New Jersey', in Anthony Cabot, William N. Thompson, and Andre Tottenham, (eds.), International Casino Law, 2nd ed, Las Vegas, NV: Trace Publications.Google Scholar
  5. Eadington, William R. (1987) 'Credit Play and Casinos: Profitability, Legitimacy, and Social Responsibility', Journal of Gambling Behavior, 3, 83-97.Google Scholar
  6. Fisher, Franklin M. and John J. McGowan (1983) 'On the Misuse of Accounting Rates of Return to Infer Monopoly Profits', American Economic Review, 73, 82-97.Google Scholar
  7. Fomby, Thomas B. and Kathy J. Hayes (1990) 'An Intervention Analysis of the War on Poverty: Poverty's Persistence and Political-Business Cycle Implications', Journal of Econometrics, 43, 197-212.Google Scholar
  8. Griffiths, Mark (1993) 'Fruit Machine Gambling: The Importance of Structural Characteristics', Journal of Gambling Studies, 9, 101-120.Google Scholar
  9. Ljung, G. M. and G. E. P. Box (1978) 'On a Measure of Lack of Fit in Time Series Models', Biometrika, 65, 297-303.Google Scholar
  10. Lowenhar, Jeffrey A., C. J. Lonoff, and Rita Smith (1991) 'Regulatory Requirements and Legalized Casino Gaming in New Jersey: The Case for Change', in William R. Eadington and Judy A. Cornelius (eds,), Gambling and Public Policy, Reno, NV: Institute for the Study of Gambling and Commercial Gaming.Google Scholar
  11. Madhusudhan, Ranjana (1996) 'Betting on Casino Revenues: Lessons from State Experiences', National Tax Journal, 49, 401-412.Google Scholar
  12. McPheters, Lee R., Robert Mann, and Don Schlagenhauf (1984) 'Economic Response to a Crime Deterrence Program: Mandatory Sentencing for Robbery with a Firearm', Economic Inquiry, 22, 550-570.Google Scholar
  13. Mills, Terence C. (1990) Time Series Techniques for Economists, Cambridge: Cambridge University Press.Google Scholar
  14. Pollock, Michael (1993) 'The CCC: A Big Gap Between Myth and Reality', in Atlantic City: 15 Years of Progress, A special report in International Gaming and Wagering Business, 14(6), 6-9.Google Scholar
  15. Rzadzki, John (1996) 'Growth and Consequences', International Gaming and Wagering Business, 17(2), 54-59.Google Scholar
  16. Satre, Philip (1981) 'A Report on the Impact of the New Jersey Casino Control Act and Related Regulations on Harrah's Marina Hotel Casino', in William R. Eadington (ed.), The Gambling Papers: Proceedings of the Fifth National Conference on Gambling & Risk Taking, 8, 144-201, Reno, NV: University of Nevada.Google Scholar
  17. Sternlieb, George and James Hughes (1983) The Atlantic City Gamble, Cambridge, MA: Harvard University Press.Google Scholar
  18. Strachan, Mary Lou and Robert L. Custer (1993) 'Female Compulsive Gamblers in Las Vegas', in William R. Eadington and Judy A. Cornelius (eds.), Gambling Behavior and Problem Gambling, Reno, NV: Institute for the Study of Gambling and Commercial Gaming.Google Scholar

Copyright information

© Kluwer Academic Publishers 1998

Authors and Affiliations

  • Mark W. Nichols
    • 1
  1. 1.Department of EconomicsUniversity of NevadaRenoUSA

Personalised recommendations