P.M. BRIEFING : Calif. Lottery Hurts Nev. Casinos
A study by two economics professors at the University of Nevada, Reno, says the California lottery has cut into Nevada’s casino business.
The report compares revenue trends in the gambling industry before and after the start of the lottery. Professors Thomas Cargill and Kambiz Raffiee said their study for the years 1986 through 1989 shows that gross gambling volume averaged 3.7% less each quarter once the lottery started.
Cargill and Raffie also said there were fewer visitors to Nevada. That meant reduced sales tax revenues, which were 4.5% lower than if the lottery had not been in effect.
The estimated loss in gaming gross revenue to casinos last year is $170 million.
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