Casino proximity, visit frequency, and gambling problems

Abstract

The geospatial impact of casinos on gambling problems is poorly understood, despite its importance to policy decisions. In this study, we propose a conceptual model to describe how access relates to gambling problems and we test whether access convenience increases risk. We collect a large sample of Canadian gamblers (n = 6,234) and geolocate each individual relative to domestic casino locations (N = 110), using their home addresses. Our analysis suggests that nearby casinos increase risk for residents. We further find that frequency of play mediates the relationship, implying an indirect link between access convenience and gambling problems. The results are robust to several estimation strategies that address endogeneity issues found in the empirical literature.