Estimating Casino Expenditures by Out-of-State Patrons: Native American Gaming in Connecticut

Abstract

Congress's passage of the Indian Gaming Regulatory Act of 1988 led to the proliferation of Native American casinos in the 1990s. This study uses patron origination analysis to investigate the substitution effect surrounding Indian gaming in Connecticut. A survey of automobiles (n = 13,383) and buses (n = 384) was conducted to determine the state of origin of casino patrons. The majority of customers at both the Foxwoods (71.7%) and Mohegan Sun (54.0%) casinos were from states other than Connecticut. Massachusetts's residents were the most frequent out-of-state visitors at both facilities (36.0% and 22.8%, respectively). These data were used to estimate out-of-state patrons' expenditures at the Connecticut casinos. Out-of-state visitors contributed 66% of gross revenue, approximately $1.28 billion, at Foxwoods and the Mohegan Sun during 1999. Implications for policymakers in casino and noncasino states are provided.

Senior leadership succession and market share: An econometric case study on Native American casinos

“…Since the two properties are among the more established casinos and largest casinos in the region, they are both likely to hold high regional brand awareness amongst gamblers. The two tribes also have the same agreement with Connecticut in terms of taxation of gaming revenues, where both properties are taxed at 25% of their overall slot revenue (Dense and Barrow, 2003).…”

“…More specifically, this study investigates the effect that the turnover rate with the CEO 1 and chairperson of the tribal council positions have on slot market share within a balanced oligopolistic gaming jurisdiction of Connecticut. Connecticut casinos are amongst the largest casino properties within the United States market (Carmichael et al, 1996; Dense and Barrow, 2003; Repetti and Hoffman, 2020). They have also been directly competing against each other for over two decades and hold similar exogenous factors influencing their slot revenues.…”

Estimating Benefits and Costs of Casino Gambling in Iowa, United States

“…The preponderance of evidence on the economic impacts of casino gambling suggests that output, employment, and income benefits accrue to the local communities (Dense and Barrow 2003;Hing, Dickerson, and Mackeller 2001;Nicholas, Giacopassi, and Stitt 2002;Piscitelli and Albanese 2000). Research during the closing years of the twentieth century suggested a tourism satellite account (TSA) as an appropriate measurement approach to calculate economic impacts of tourism in all its complexities.…”