Award Date

8-1-2012

Degree Type

Dissertation

Degree Name

Doctor of Philosophy (PhD)

Department

Hotel Administration

First Committee Member

Bo J. Bernhard

Second Committee Member

Ashok K. Singh

Third Committee Member

William R. Eadington

Fourth Committee Member

Bradley Wimmer

Number of Pages

99

Abstract

This study examines the effect of casino tax rate structure on investment by casino operators. Using a panel data set consisting of all states with legal commercial casino gambling from 1998 to 2009, a fixed-effect model with two-stage least squares is estimated to examine the effect of gambling taxes on firms' short-run behavior. The study finds that maximum casino tax rates decrease casino employment, with an estimated average elasticity of -0.5. This result is noted to be robust to several different model specifications and data subsets. No robust relationship is found between maximum tax rates and casino wages. No significant relationship is found between effective tax rates and casino employment.

Keywords

casino; employment; gaming; policy; tax

Disciplines

Gaming and Casino Operations Management | Public Policy | Taxation-State and Local

Language

English


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