Award Date


Degree Type

Professional Paper

Degree Name

Master of Science in Hotel Administration


Hotel Administration

First Committee Member

William Werner


Microeconomic theory generally supports the idea of an inverse relationship between taxes and capital investment. The gaming industry however does not operate on a free market equilibrium of supply and demand. Regulation and taxation of this industry can distort competitive forces and, as a result, investment decisions. Forces are described herein which either strengthen or weaken this inverse relationship, as well as how they affect the value of the limited number of casino operating licenses which states grant. Higher tax rates are generally shown to result in small-scale properties, which cater to a narrow base of consumers. In contrast, low tax rates are shown to allow operators the flexibility to grow their consumer base, and create broader economic benefits.


Casinos--Government policy; Casinos--Management; Casinos--Taxation; Taxation


Economics | Gaming and Casino Operations Management | Taxation