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Full-Text Articles in Regional Economics
Do Pennsylvania Casinos Cannibalize Pa State Lottery Revenues?, Andrew J. Economopoulos, William Stolle
Do Pennsylvania Casinos Cannibalize Pa State Lottery Revenues?, Andrew J. Economopoulos, William Stolle
Business and Economics Faculty Publications
The first Pennsylvania casino opened its doors in 2006. Studies of other states, and nationally, indicate that casinos cannibalize lottery revenues as consumers substitute lottery spending for casino spending. Pennsylvania time-series data and cross-sectional data for each county suggests that higher casino wagering leads to lower lottery spending. Unlike the other studies, Pennsylvania's rate of cannibalization is relatively low where state lottery revenues decline by five to fifteen cents for each dollar of casino revenue gained. About half of the cannibalization takes place in the counties where the casino resided.