Document Type

Article

Publication Date

Spring 2012

Abstract

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.

Comments

Originally published in Pennsylvania Economic Review, Volume 19, No. 1, Spring 2012. Copyright by the Pennsylvania Economic Association.

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