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No smoking at the slot machines: the effect of a smoke-free law on Delaware gaming revenues 

Author: Michael R. Pakko a
Affiliation:   a Federal Reserve Bank of St. Louis, St. Louis, MO 63166-0442, USA
DOI: 10.1080/00036840600905241
Publication Frequency: 24 issues per year
Published in: journal Applied Economics, Volume 40, Issue 14 July 2008 , pages 1769 - 1774
First Published: July 2008
Formats available: HTML (English) : PDF (English)
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Abstract

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 analyses 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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