THE EFFECT OF COMPETITION ON TAX REVENUES IN THE CASINO GAMING INDUSTRY

The ability of a state to collect tax revenues and to control the amount of revenues collected from the casino gambling industry is due to the character of the competition and to a control limited to the honesty of the firm and the integrity of its owners. An analysis, made from a simple tax revenue...

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Bibliographic Details
Published in:National tax journal 1981-06, Vol.34 (2), p.261-265
Main Author: GUTHRIE, ROBERT S.
Format: Article
Language:English
Subjects:
Blackjack
Casinos
Competition
Economic competition
Effects
Elasticity of demand
Gambling
Gambling industry
Games
Industry
NOTES AND COMMENTS
Price elasticity
Revenue
State taxes
Tax rates
Tax revenues
Taxes
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Summary:The ability of a state to collect tax revenues and to control the amount of revenues collected from the casino gambling industry is due to the character of the competition and to a control limited to the honesty of the firm and the integrity of its owners. An analysis, made from a simple tax revenue model and using the example of the most important casino game of blackjack, shows that price competition among casino firms can create large variations in the amount of tax revenue collected. This variation does not exist in the pari-mutuel and state lottery industries because the state establishes the price of the product and controls the operations of the firm by law.
ISSN:0028-0283
1944-7477
DOI:10.1086/NTJ41862374