Table 1: Casino Revenue, Wages and Taxes for Major Gaming States, 2012 percent in n simu reve decli milli Such a decli Casi ns slot- New Jersey to con The second simulation, h residents’ cons on lation i nues are at ne in oninn et reven no resorts in 20 hort, a $250 mi only casino in ues or 50 ine also comports with 10 from tl lion fall i SimC is defi sider. It northern New Je um the existing set of casin mption at Resort Casin percent the share of gam he inco of the net revenues g me of Pennsylvanians Os i ing n revenues in Atlantic C may n ned as th ity due rsey appears to be a worthwhile simulation for th ot be a worst-case condi somewhat extreme scenario regarding revenue substitution across the two types of casi e shocks in SimB plus a reduction of nonresident consu o resorts i n the LO n A tlanti tic City. 1 ues gen ndustry. T erated in Atlan nly) (CDC Gaming Repo the installation of a $500 milli enceforth SimB, includes SimA and adds to it a reduction of 12.6 ption of New Jersey’s Casino Resorts i s to simulate a somewhat more realistic scenario in which some of the new casino’s the expense of nonresident consu he point of this The 12.5 percent SAMNJ-10 is effectively $250 ted by the new s ots-only racino. tic City’s rts, 2013). ion e State of tion, but it certainly represents a nos. motion in Finally, SimD evaluates the effects of SimC and adds to it a community investment for Casino Resorts in A tlantic Ci This is designed to simulate conjectures of C prefer casinos with low tax ra ACA (2011), Casino Resorts i 1.25 percent of gross gami represe Additio percent percent. the 2000-20 Resorts somewhat s leaves little revenues gé would be lost du $12.5 millio represents a in New J nts a cut in s nally, we esti reports on casi ies hine- 10 mal new faci e to th n less would be alloca tes because the n New Jersey pay taxes p ng revenues. In tl aroun sed facilities, investment e reductio he investment in the drop i d 10 percen n private dgets. In general, 2 s rts nvestment i us acommu ni t simulati tion curren Cons ‘a’ . n t: We ass 2.5 percent. (A tax funds.) App if ty and subtracting the 10 percent n in nonresident consumption of Casino resorts means ted to private investment annually. Th reduction in private investment via construction of 0.16 percent.'! ying the latter grow y %U redu ty and a likely fall of p DC Gaming Repo retum of i 013 investm con rate of al th rate to the $500 milli of ction in the mandatory ivate investment. ) that suggest investors y higher. According to ent obligation of tion by this 1.25 he SAMNJ-10 of 0.07 struction using data on f investment in Casino rate of investment rq reduc the $250 millio is sum of $12.5 mil and restaurants, high-end shopping venues, and the like. The proposed racino in the Meadowlands will lack these venues. We assume that patterns of visitor spending in Atlantic City did not change from 2008 as reported in Lahr et al. (2010). We distributed the $166.3 million among the industrial categories as displayed in Table 2. Furthermore, 60 percent all of the spending in Atlantic City is assumed to be by non-New Jerseyans (Casino Reinvestment Development Authority, 2012). employment reduce expenditures on unemployment transfers. Th public deficit down in 1.92 percent. f nonresident consumption barely changes real G reduces unemployment by 0.09 pp and raises is estimated by multiplying the to U.S. Bureau of m the model. Househol increase of tax revenues on gaming cut As can be observed in Table 4, the inc due to the general equilibrium effect: state’s job count by 4,960. This number New Jersey i percentage rise goes up as resu The increase in revenues, whic consu of payments more favorable with th ith the ROW increases in 0.08 percent. of emp t of the the dem oyment, whi improved employ and for labor and in 2010, 4,964,752 accordi ch resu h edge upward by 0.09 percent. mption reduces external savings but e rest ut ng ts fro me in house I a of th nt situ holds' gross income leads to higher income rise in eU ation, as do private co n the simulation, the i S (it rises 0.49 percen From thi of rai Entertainment industry. wi sing final demand outweigh the s, it can be concluded negative effects of the enhanced tax b ese effects combined with Econo imports and prices make the cu figure of employees mic Analysis, by ds’ disposable inco nsumption and savin ey ncrease in nonresiden rrent balanc t). The current balanc that the positive effect urden on th Table A2. Variation in domestic production (percentage), continue Table A2. Variation in domestic production (percentage), continued
