Start Date
7-1-2011 8:00 AM
End Date
7-1-2011 9:15 AM
Track
1. Track 1 – Formal Paper Presentation
Subject Area
Finance and Economics
Faculty Member
Ashok Singh, Ph.D. Ashok.Singh@unlv.edu
Abstract
This paper analyzes the effect of the 2003 Illinois gaming tax increase on Indiana riverboat gaming demand. The four riverboats located in Indiana’s Northeast corner are examined. Slot machine coin-in from January 2000 to December 2006 is chosen to represent gaming demand. Multiple regression analysis is used to model both the tax increase and account for seasonality in the data. The findings reveal that a segment of Indiana riverboat operators experienced an increase in gaming demand when the tax increases took effect. The findings suggest that legislators should acknowledge and evaluate the negative economic pressures that tax increases have on their own state’s commercial gaming operators and recognize the benefits tax increase bring to the gaming industry in competing states.
Keywords
riverboat gaming, gaming taxes, Indiana riverboat, commercial gaming
Cross-State Substitution: Estimating the Effect of the 2003 Illinois Gaming Tax Restructuring on Indiana Riverboat Gaming Volume in the Chicagoland Region
This paper analyzes the effect of the 2003 Illinois gaming tax increase on Indiana riverboat gaming demand. The four riverboats located in Indiana’s Northeast corner are examined. Slot machine coin-in from January 2000 to December 2006 is chosen to represent gaming demand. Multiple regression analysis is used to model both the tax increase and account for seasonality in the data. The findings reveal that a segment of Indiana riverboat operators experienced an increase in gaming demand when the tax increases took effect. The findings suggest that legislators should acknowledge and evaluate the negative economic pressures that tax increases have on their own state’s commercial gaming operators and recognize the benefits tax increase bring to the gaming industry in competing states.