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Working Paper 2005-054C

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"No Smoking at the Slot Machines: The Effect of a Smoke-Free Law on Delaware Gaming Revenues"
by Michael R. Pakko

As communities around the nation consider laws restricting smoking in public places, a key political and economic issue that often arises is the effect that such laws have on the sales and profits of particular sectors. The gaming industry has been active in opposition to such ordinances, citing large prospective losses. This article analyzes the revenues of three gaming facilities in Delaware following the implementation of a smoke-free law in December 2002. Revenues are found to have declined significantly at each of the three facilities, with relative magnitudes of losses corresponding to the availability of alternative gaming venues in the region.

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Category > Applied Microeconomics
Category > Regional Economics
Author > Michael R. Pakko