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The Impact of Stagnating Casino Revenues on State and Local Governments Tax Receipts
Author(s) -
Srinivasan Arun K.,
Lambert Thomas E.
Publication year - 2016
Publication title -
public budgeting and finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.694
H-Index - 30
eISSN - 1540-5850
pISSN - 0275-1100
DOI - 10.1111/pbaf.12123
Subject(s) - revenue , recession , tax revenue , economics , monetary economics , great recession , business , labour economics , finance , public economics , macroeconomics
After the Great Recession, the popular press has noted a rebound in casino revenues in some states and localities, and some expect growth like before. However, there were trends indicating stagnating revenues before the recession, and casinos were shown not to be “recession‐proof” as revenues declined. Revenues have stagnated partially due to a saturation point being reached with regard to casino gaming. The growth rate of revenues and tax proceeds may follow a product life cycle curve. Introducing more venues may give a temporary boost to tax receipts, but trends indicate that large gains are over unless casinos re‐invent themselves.