Mark W. Nichols

Does the Presence of Casinos Increase Crime? An Examination of Casino and Control Communities:

This study is an analysis of crime in six new casino communities and compares the crime rates to those found in six noncasino control communities. The experimental and control communities were matched on 15 socioeconomic variables. The crime rates were calculated using resident population and population at-risk, which includes tourists in the crime rate calculations. Both Part I and Part II crimes were analyzed using data encompassing the pre- and postcasino presence. Crime was expected to rise in the casino communities, consistent with routine activity theory and the belief that casinos serve as hot spots for crime. The analysis yielded few consistent findings across the test and control communities. Crime rates increased significantly in some casino communities, some remained relatively stable, and others decreased. The authors conclude that crime does not inevitably increase with the introduction of a casino into a community, but that the effects of casinos on crime appear to be related to a variety of variables which are only poorly understood.

Casino gambling and bankruptcy in new United States casino jurisdictions

Abstract Using quarterly data on personal consumer bankruptcy for 1989:Q4 through 1998:Q1, this study examines the impact that the introduction of casino gambling has on per capita personal bankruptcy filings. Eight jurisdictions that have recently adopted gambling are compared with a set of matching control jurisdictions, communities without casinos that are economically and demographically similar to the eight communities. The results reveal that casino gambling is associated with an increase in personal bankruptcy in seven of the eight communities. In five of the seven the increase is statistically significant. However, an increase is not universal and in one community, Harrison County, Mississippi (Biloxi), bankruptcy per capita significantly decreased. It is speculated that this decrease is due to the features of both the community and the casino industry in Biloxi. Finally, the most significant changes in bankruptcy occur among Chapter 13, as opposed to Chapter 7, filings. This suggests that a growing portion of insolvents are creating repayment plans for their debts. Policy implications of the findings are discussed.

Gambling Among Older Adults: A Comparative Analysis

With the spread of gambling in its many forms across the American landscape the question arises as to how senior citizens have been effected. This study examines data on gambling behavior and related attitudes gathered from a random sample of community residents in jurisdictions that had recently allowed casinos to open. Comparisons are made between senior and younger adults regarding their gambling behaviors. Though the results suggest that casino gambling is not a major threat to the elderly it is noted that more extensive research needs to be done to assess the individual and social costs and benefits, if any, associated with large numbers of the elderly regularly participating in gambling as a social activity.

Attitudes of Community Leaders in New Casino Jurisdictions Regarding Casino Gambling's Effects on Crime and Quality of Life

Interviews were conducted with 128 key individuals in seven communities that are new casino jurisdictions. The individuals interviewed are community leaders (mayors, members of the city council, leading members of the business community) or work in areas (banking, law enforcement, social services) which would provide insight into the positive and negative effects that casinos have on communities. A series of core questions were asked of all 128 respondents followed by additional questions designed to elicit specific information based on the individuals position. A content analysis was conducted comparing responses both within and between communities by leadership position. Findings indicate that a clear majority (59%) of those interviewed are in favor of the casino in the community, believe the casino enhances the quality of life in the community (65%), and believe that the casino has a positive effect on the economy (77%). Although a majority of the community leaders interviewed view the impact of casinos favorably, responses vary both by community and by position within the community. Finally, since ths group of community leaders was not selected randomly, it is possible that unintended interview bias shifted these results in a positive direction.

Advertising and Quality in the U.S. Market for Automobiles

Using data consisting of domestic and foreign automobiles over the period 1985-1990, the hypothesis that advertising serves as a signal of higher quality is empirically tested. This is accomplished by examining how advertising levels vary with a quality measure that is not observable at the time of purchase but becomes available subsequent to a models release. Above average quality results in expenditures that are 15% higher than average quality outlays. Lending further support to the signalling hypothesis, the positive advertising-quality relationship holds strongest when a model significantly improves in quality relative to the previous years model.

Deregulation and Cross-Border Substitution in Iowa's Riverboat Gambling Industry.

When riverboat casinos began operating in Iowa in April 1991 a strict regulatory structure, consisting of mandated sailing, wagering and loss limits, and casino space restrictions, was imposed. The restrictions were removed in May 1994 after Illinois introduced riverboat gambling without space, betting, or loss limits. Using data on casino win and admissions in Iowa and Illinois, this study analyzes the impact that deregulation had on casino win, win per admission, and total admissions. The findings reveal that deregulation significantly increased casino win, win per admission, and total admissions in Iowa. Moreover, when focusing on the “Quad Cities” market, which encompasses both Iowa and Illinois casinos, deregulation is found to result in significant cross-border substitution. In addition, there is evidence that deregulation has partly resulted in existing gamblers losing more money as opposed to increasing the number of gamblers.

The Impact of Deregulation on Casino Win in Atlantic City

This paper examines the impact of deregulation on thedemand for casino gaming in Atlantic City. Specifically, the paper analyzes the impact ofexpanded operating hours and floor space devoted toslot machines. Using monthly win data between June1978 and July 1996, the analysis reveals that expandedfloor space had a significant, positive impact on win,resulting in an average monthly increase of over \

Changes in suicide and divorce in new casino jurisdictions.

2million. This shows the importance of developing aregulatory structure rigid enough to ensure thehonesty and integrity of the gaming industry, butflexible enough to allow management to respond tochanging market conditions.

Perceptions of the Extent of Problem Gambling Within New Casino Communities

Using county-level data, this study examines the impact that the introduction of casino gambling has on suicide and divorce. Eight communities that adopted casino gambling between 1991 and 1994 are compared with a matched set of control counties, jurisdictions that are economically and demographically similar to the casino counties. Suicide rates are not statistically different between casino and control communities. Divorce rates are lower in three casinos counties, higher in one, and not statistically different in four. Overall, the results suggest no widespread, statistically significant increase in either suicide or divorce. Possible explanations for the results are provided.

The Impact of Visiting Team Travel on Game Outcome and Biases in NFL Betting Markets

Several recent studies using objective measures have found that the rate of pathological gambling in the U.S. is less than 5%. To determine the general populations perception of the prevalence of pathological gambling, a survey was conducted in seven communities where casinos have recently opened. Of the 1631 respondents who provided an estimate, the mean response was that 16% of the community residents were problem gamblers, more than three times the rate found by studies using specific diagnostic criteria. A regression equation found several demographic and attitudinal items are associated with higher prevalence estimates. In addition, the data support a “close to home” hypothesis that respondents who have relatives who have experienced problems with gambling will tend to perceive higher rates of problem gambling in the community.