Year of Publication

2022

College

Martin School of Public Policy and Administration

Date Available

6-17-2022

Degree Name

Master of Public Administration

Committee Chair

Dr. Ron Zimmer

Executive Summary

Casino and sports gambling implementation has been a hotly debated topic in recent years as several states have passed legislation allowing it. Most states have had some form of gambling in their state for years even if it is the lottery; however, riverboat gambling is legal in six states. These casinos offering table and electronic gaming are legal as long are they remain moored on the shoreline. For example, table games take the form of poker or blackjack and electronic gaming takes the form of slots. While the introduction of casino gaming produces large annual tax payments, players do not necessarily have to be state taxpayers themselves. It is reasonable to believe driving distance is a major factor in any consumer’s decision-making process. This ability to travel means the inclusion of players from neighboring states could be possible. This analysis tries to illustrate that possibility by looking into the existence of cross-border riverboat casino gambling. It will use annual adjusted gross receipts (AGR) for five Illinois riverboat casinos with data collected from the Illinois Gaming Board from 1992 through 2005. The dataset consists of four riverboat casinos that consider Indiana its border state and one in East Peoria, Illinois which is considered the most interior or control. Year-over-year percent change was calculated for two separate scenarios to see if significant drops in adjusted gross receipts occurred the same year as a border state implemented similar legislation. Both Joliet A + B - about 45 minutes from Indiana’s border - experienced the most severe annual decreases in adjusted gross receipts.

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