Post on 21-Mar-2016
description
THE IMPACT OF A LOCAL SMOKE-FREE AIR LAW ON
WAGERING AT AN OFF-TRACK BETTING FACILITY IN INDIANA
Jon Macy & Erika HernandezIndiana University
Economic Impact of Smoke-Free Air Laws
Research: no negative impact on business activity Restaurants Bars Hotels Hospitality industry across borders Restaurants and bars in a tobacco-growing
community
Evidence for Gaming Industry is Growing but Still Lacking
2003: Local smoke-free ordinances in Massachusetts had no effect on bingo revenues
2005-2006: Conflicting findings on the effect of Delaware’s statewide smoke-free air law on gaming revenues at racinos
2008: Local smoke-free ordinances in Kentucky had no effect on charitable gaming revenues
2011: Ohio’s statewide smoke-free air law had no effect on the hospitality industry (including casinos) in Ohio and Kentucky border counties
Summary ofGaming Industry Research
Massachusetts and Kentucky studies focused on charitable gaming (bingo)
Delaware studies had no comparison group and focused on video slot machine revenue
Ohio/Kentucky border study included entire hospitality industry
Unpublished Illinois study used only 4 years of data total and only 1 year after statewide law
10 years behind research on rest of hospitality industry
Current State of Policy Efforts
Opponents of smoke-free workplace laws continue to argue that they negatively impact gaming revenues
Casinos first to be exempted from smoke-free air laws
Indiana Legislative Fiscal Impact Statement predicted negative economic consequences
More evidence needed to support policy advocacy
Indiana OTB Study - Background
OTB site in Fort Wayne, Indiana went smoke-free on June 1, 2007 due to local ordinance
OTB sites in Indianapolis and Merrillville, Indiana continue to permit smoking
Study objective: test the effect of the law on wagering at Fort Wayne site compared to the Indianapolis and Merrillville control sites
Indiana OTB Study - Methods
Data Monthly per capita handle (amount wagered)
from 2002 to 2009 for the 3 OTB locations Monthly unemployment rates for counties
where OTBs were located Analysis
Tested for shift and slope changes in per capita handle for each location after June 1, 2007
Tested trends in per capita handle for 2 smoking locations compared to smoke-free location
Seasonally adjusted per capita handle at three off-track betting locations in
Indiana, 2002 to 20092002
2003
2004
2005
2006
2007
2008
2009
0
1
2
3
4
5
6
7
Merrillville
Indianapolis
Fort Wayne
Seas
onal
ly a
djus
ted
per
capi
ta h
andl
e in
U
S$
Fort Wayne smoke-free air law went into effect
Indiana OTB Study - Results
No change in trend in per capita handle at any of the 3 OTBs after June 1, 2007
Per capita handle decreased at all 3 OTBs from 2002 to 2009
Unemployment rate was a significant predictor of per capita handle As unemployment rate increased over the
study period, per capita handle decreased
Indiana OTB Study - Conclusions
No change in trend in per capita amount wagered at Fort Wayne OTB after city implemented a smoke-free air law
No change in trend at two comparison locations
There is no economic reason for policymakers to exclude OTB facilities from smoke-free legislation
Workers and patrons at gaming facilities can be protected from secondhand smoke without fear of negative economic consequences
THANK YOU!Co-author & statistician: Erika
HernandezContributors: Tim Filler, Stan Glantz,
Mary Lay, Kosali Simon