Social and Behavioral Sciences Commons^™

Impact Of The 2003 Illinois Gaming Tax Rate Increase On Marketing Spending And Cross-State Substitution, Mikael Bengt Ahlgren

UNLV Theses, Dissertations, Professional Papers, and Capstones

The purpose of this research was to investigate three potential consequences related to the 2003 Illinois Gaming Tax rate restructuring. The first section presents the assessment of whether a higher tax rate motivated an Illinois casino operator to reduce of marketing/promotional expenditures in an attempt to negatively influence revenues. The second establishes if the surrounding state gaming operators reacted to the increased Gaming Tax rate in Illinois, by raising their marketing spending. The last section clarifies whether the changes to the Illinois Gaming Tax Schedule impacted gaming volumes in the neighboring/competing states of Indiana, Iowa, and Missouri.

The analysis relied …

The Effect Of Casino Tax Policy On Short-Run Gaming Development, Kahlil Philander

UNLV Theses, Dissertations, Professional Papers, and Capstones

This study examines the effect of casino tax rate structure on investment by casino operators. Using a panel data set consisting of all states with legal commercial casino gambling from 1998 to 2009, a fixed-effect model with two-stage least squares is estimated to examine the effect of gambling taxes on firms' short-run behavior. The study finds that maximum casino tax rates decrease casino employment, with an estimated average elasticity of -0.5. This result is noted to be robust to several different model specifications and data subsets. No robust relationship is found between maximum tax rates and casino wages. No significant …