Gaming tax; gaming tax increase; Illinois gaming tax; riverboat gaming; gaming demand


Gaming and Casino Operations Management | Gaming Law

Document Type

Original Research Article


This paper analyzes the effect of the 2003 Illinois gaming tax increase on gaming demand. To model gaming demand, slot machine coin-in is chosen for the period January 2000 to December 2006. Multiple regression analysis is used to model both the tax increase and account for seasonality in the data. A Box Jenkins model was employed to address correlation of error terms. The findings reveal that Illinois experienced a decrease in gaming demand when the tax increases took effect. The findings indicate that legislators should acknowledge and evaluate the negative economic pressures tax increases have on the gaming industry.