The Spatial Evolution of Casino Gambling

This article examines the proliferation of gambling in United States counties during the 1990s and examines the factors that influence a region's decision to allow or prohibit casino gambling. Native American casino openings are driven by somewhat different factors than non-Native American casino openings. Both types of casinos are more likely to open in counties with large populations. More importantly, non-Native American casinos are more likely to locate near large populations across state borders. Strong regional variation in the probability of casino adoption exists, and the Mississippi River had a strong influence on the spatial evolution of gambling. As expected, Native American casinos are more likely to open in counties with large concentrations of Native Americans. Surprisingly, this study finds no evidence of strategic behavior among bordering counties and no evidence of competition between Native American and non-Native American casinos.