This paper examines the distributional effects of casino gambling, with an emphasis on Iowa. The casino tax is found to be regressive, and regressivity increases with increased accessibility to casinos. Prevalence and costs of pathological and problem gamblers are discussed in detail. Evidence suggesting a positive correlation between casinos and bankruptcy rates is presented. Overall, it is found that casinos disproportionally harm poor individuals, non-whites (with the exception of Native Americans), and those living near casinos. Iowans must understand the equity implications of casino gambling in order to make informed policy decisions, including the county referendums in 2002.
Major Themes in Economics
©2001 by Major Themes in Economics
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"A Game Worth Playing? The Distributional Effects of Casino Gambling: An Emphasis on Iowa,"
Major Themes in Economics, 3, 3-16.
Available at: https://scholarworks.uni.edu/mtie/vol3/iss1/3