Recent Evidence on Casinos and Economic Growth

  • Douglas M. Walker
Part of the Management for Professionals book series (MANAGPROF)


The results from the previous chapter are interesting because they capture the economic effects of casinos at a state level, right as the industry began its spread outside of Nevada and Atlantic City. However, the results do not provide any evidence on whether the economic growth effects persist beyond a few years. In this chapter I provide additional empirical evidence on the impact of casinos on state-level economic growth. First, I repeat the casino analysis from the previous chapter, using updated data. Then I present an analysis of how the casino industry impacted the recovery from Hurricane Katrina in 2005 in the Gulf States. This newer evidence is consistent with the previous evidence we found.


Capita Income Gulf Coast Personal Income Slot Machine Quarterly Data 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. American Gaming Association. 2005. State of the states, 2005: The AGA survey of casino entertainment. Washington, DC: Author.Google Scholar
  2. American Gaming Association. 2006b. Summary of gaming industry Katrina relief efforts. Washington, DC: Author.Google Scholar
  3. American Gaming Association. 2008. State of the states, 2008: The AGA survey of casino entertainment. Washington, DC: Author.Google Scholar
  4. Bureau of Economic Analysis. 2005. Estimated damage and insurance settlements effects from Hurricanes Katrina, Rita, and Wilma on quarterly and annual estimates of personal income. Washington, DC: Author.Google Scholar
  5. Cotti, C.D. 2008. The effect of casinos on local labor markets: A county level analysis. Journal of Gambling Business and Economics 2(2): 17–41.Google Scholar
  6. Schumpeter, J.A. [1934] 1993. The theory of economic development. New Brunswick, NJ: Transaction Publishers.Google Scholar
  7. Skinner, S.J., R.B. Ekelund, and J.D. Jackson. 2009. Art museum attendance, public funding, and the business cycle. American Journal of Economics and Sociology 68(2): 491–516.Google Scholar
  8. Sobel, R.S., and P.T. Leeson. 2006. Government’s response to Hurricane Katrina: A public choice analysis. Public Choice 127: 55–73.Google Scholar
  9. Thornton, D.L., and D.S. Batten. 1985. Lag-length selection and tests of Granger causality between money and income. Journal of Money, Credit, and Banking 17(2): 164–178.Google Scholar
  10. Walker, D.M., and J.D. Jackson. 2007. Do casinos cause economic growth? American Journal of Economics and Sociology 66(3): 593–607.Google Scholar
  11. Walker, D.M., and J.D. Jackson. 2008b. Market-based “disaster relief”: Katrina and the casino industry. International Journal of Social Economics 35(7): 521–530.Google Scholar
  12. Walker, D.M., and J.D. Jackson. 2009. Katrina and the Gulf states casino industry. Journal of Business Valuation and Economic Loss Analysis 4(2):article 9.Google Scholar

Copyright information

© Springer Science+Business Media New York 2013

Authors and Affiliations

  • Douglas M. Walker
    • 1
  1. 1.Department of Economics & FinanceCollege of CharlestonCharlestonUSA

Personalised recommendations