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DOES INDIAN CASINO GAMBLING REDUCE STATE REVENUES? EVIDENCE FROM ARIZONA
Author(s) -
ANDERS GARY C.,
SIEGEL DONALD,
YACOUB MUNTHER
Publication year - 1998
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.1998.tb00524.x
Subject(s) - taxable income , revenue , state (computer science) , tax revenue , reservation , economics , business , monetary economics , agricultural economics , public economics , finance , accounting , algorithm , computer science , political science , law
Critics of Indian gaming contend that reservation casinos have a negative impact on state economies. This paper tests the hypothesis that the introduction of Indian casinos caused a structural change in the formation of Arizona state revenues. Data are from Maricopa County, the largest county in Arizona. Findings suggest that Indian casinos may divert funds from taxable to non‐taxable sectors. The growth in tax revenue from non‐gaming sectors of the economy has masked these displacement effects. However, given the trend toward increasing the proportion of state funds from sales taxes, a diminution in the rate of economic growth could have serious implications for future state budgets.