September’s Newsletter provides a summary of a recent study by three researchers affiliated with Lexecon, Inc. and the Harvard Project for American Indian Economic Development. Jonathan Taylor, the primary author, presented the findings of this study at the 11^th International Conference on Gambling and Risk-Taking in Las Vegas, Nevada in June, 2000. The study will soon be published and the NIGA Library will have a link to the complete study at that time.    

"The National Evidence on the Socioeconomic Impacts of American Indian Gaming"

By
Jonathan Taylor, Matthew Krepps, and Patrick Wang
Harvard University/Lexecon
April, 2000

History of the study

This study analyzes the comprehensive dataset gathered by the National Opinion Research Center (NORC) at the University of Chicago on behalf of the National Gambling Impact Study Commission (NGISC). The dataset was originally constructed to assess the effect of casino introductions on communities of 10,000 persons or larger which witnessed a casino introduction of any kind within 50 miles. Because of these parameters, none of the 100 communities studied are Indian communities. Based on a statistical analysis of these 100 communities across the United States, 24 of which experienced the introduction of a nearby non-Indian casino and 16 of which experienced the introduction of an Indian casino, this study finds that:

Major finding of the study

"Indian casinos have substantial beneficial economic and social impacts on surrounding communities. Moreover, the positive economic and social impact of Indian casinos is measurably greater on surrounding communities than the impact of non-Indian casino. Further analysis reveals that this effect is drive by the fact that Indian casinos are more likely to be located in relatively economically depressed areas displaying lower average incomes prior to casino introduction. No evidence of harmful economic or social impacts due to Indian casino introduction is discernible in our 30 indicators of economic and social health."

Social Benefits

"On the social side, NORC data can afford a comprehensive and systematic assessment of the argument that Indian casinos-because they improve the economic fortunes and the community integrity of a heretofore-underdeveloped minority-can actually precipitate a net social benefit."

Decrease in unemployment insurance payments

"Not only do Indian casinos help the poorer of the tribes move ahead vis-à-vis their counterparts with respect to employment, but also [our] evidence indicates Indian casino have accomplished the same for proximate non-Indian communities with respect to income maintenance programs. Casinos generally could be expected to have a 6% decrease in income from income maintenance programs, whereas Indian casino precipitate a more profound 32% decline."

Decrease in Crime

"Our data indicates that communities witnessing the introduction of a proximate Indian casino experience a substantial net decline in auto theft and robbery."