Perceptions; local residents; casino gambling impacts; bankruptcy and borrowing habits
Gaming and Casino Operations Management | Gaming Law
Original Research Article
This study attempts to establish a dialogue between perceived negative impacts associated with borrowing money to gamble and the resulting bankruptcies in three ways: matching local resident opinions with evidence they are asked to provide; determining causal effects of evidence on perceptions; and confirming the bankruptcy issues by using historical data. The results of the study are mixed. On one hand, they indicate a close tie between borrowing perceptions and real facts. However, on the other hand, they also report that bankruptcy related perceptions are not based on evidence and suggest that several factors are at play besides the casino gambling revenue. An empirical time series analysis of historical data illustrates and supports this contention. These results have important policy implications for regulators and operators of the casino industry.