Casino Taxation in Macao: An Economic Perspective

Macao’s gaming industry has experienced dramatic growth for 8 years, yet with certain social costs due to compulsive gambling. The government has come under pressure for tax cuts even though its gaming receipts are falling relatively to the casino retained revenue. The request for tax relief is triggered by a recent decline in net profit despite fast growing gross gaming revenue under favorable market conditions. This is very likely caused by a substantial hike in casino operating costs due to increased competition and might also signal the presence of the principal-agent problem. Given the regressivity of gaming tax with respect to net profit, it is no surprise that casinos with lower profitability are more prone to seek tax cuts. The source of Macao gaming profit hinges on three distinct factors: rising demand from China, monopoly location for casinos, and market structure of oligopoly. These factors provide economic justifications for the current tax regime of Macao with a strong ability to pass tax burdens on to massive visitors. The government relies on casino tax revenue to deal with gambling related problems and promote local diversified development. Pushing for tax variability may create policy instability, business uncertainty, and unpredictable prosperity in the long term.     

The making of the global gambling industry: An application and extension of field theory

The past two decades have seen a global convergence from gambling prohibition to legalization, but also a divergence regarding how new gambling industries are structured and regulated. This article compares two cases of casino legalization exhibiting different and, given conventional understandings of the two countries, unexpected outcomes. In the United States, ethnic entrepreneurs (Indian tribes) were granted a monopoly on casinos in California; in South Africa, the new ANC government legalized a competitive, corporate casino industry. Through explaining these disparate industry structurings, two arguments are advanced. First, Bourdieu's field theory best describes the interests and strategies of industry “players” as they attempted to shape policy. Second, Bourdieu neglects the independent role of institutions in mediating between field-level dynamics and concrete regulatory outcomes. In California, Tribes converted economic into political capital through a public election. In South Africa, the ANC used a centralized commission to implement corporate gambling over public opposition, in essence converting political into economic capital. By viewing policy domains as “dramaturgical prisms” whose sign–production tools and audiences facilitate certain but not other capital conversion projects, I both explain unexpected regulatory outcomes and synthesize field and political process theories. Jeffrey J. Sallaz received his Ph.D. from the University of California-Berkeley and is currently Assistant Professor of Sociology at the University of Arizona. In addition to examining the struggles surrounding gambling legalization, he has studied ethnographically the experience of service work in the global casino industry and the politics of deindustrialization in the US rust belt. He is currently conducting research for a project analyzing the uneven diffusion of Pierre Bourdieu’s ideas into the field of American sociology over the past three decades.     

Gambling motivations and superstitious beliefs: a cross-cultural study with casino customers

The expansion of legalized commercial gaming in Macau has motivated stakeholders to explore opportunities in other Asian countries. However, there is a lack of research focusing on casino customers in these markets. Thus, the purpose of this study is to explore gambling superstitious beliefs and motivations of those visiting a casino in South Korea, and how these factors are different across four ethnic groups. The researchers surveyed 323 casino customers in the lounge area on the casino floor, including Americans, Chinese, Japanese, and Koreans living abroad. This study found American gamblers could be characterized as more superstitious than Japanese gamblers, while the Chinese and American gamblers exhibited many similarities regarding the pattern of superstitious beliefs that they were most likely to endorse. The findings also suggest the culture and the area around the casino might be more important to Chinese, while novelty to Japanese and winning money to Korean gamblers are seen as most important. This study contributes to gambling literature by examining gamblers’ beliefs and motives in a different setting with more diverse populations than those in previous studies. The findings of this study will help casino operators properly develop and adjust strategies to thrive in the Asian marketplace.     

Attitudes of Community Leaders in New Casino Jurisdictions Regarding Casino Gambling's Effects on Crime and Quality of Life

Interviews were conducted with 128 key individuals in seven communities that are new casino jurisdictions. The individuals interviewed are community leaders (mayors, members of the city council, leading members of the business community) or work in areas (banking, law enforcement, social services) which would provide insight into the positive and negative effects that casinos have on communities. A series of core questions were asked of all 128 respondents followed by additional questions designed to elicit specific information based on the individual's position. A content analysis was conducted comparing responses both within and between communities by leadership position. Findings indicate that a clear majority (59%) of those interviewed are in favor of the casino in the community, believe the casino enhances the quality of life in the community (65%), and believe that the casino has a positive effect on the economy (77%). Although a majority of the community leaders interviewed view the impact of casinos favorably, responses vary both by community and by position within the community. Finally, since ths group of community leaders was not selected randomly, it is possible that unintended interview bias shifted these results in a positive direction.     

Impact studies,cost-benefit analysis and casinos

The simplest forms of impact analysis treat a prospective casino facility as an entirely new source of demand in a region, while completely ignoring the character of supply responses. Such approaches cannot be used to estimate the net benefits of a casino. On the demand side they fail to consider the displacement of other local goods and services, while on the supply side they ignore the fact that most workers have real opportunity costs in the form of alternative employments either inside or outside the region. While various studies have attempted to address the displacement issue, virtually none have looked seriously at the opportunity cost of labor. Evidence suggests that such costs are large. An estimate presented here for Chicago sets these costs at 45% of casino and related labor income.     

Financial policy innovation for social change: a case study of China's green credit policy

Financial policy impacts on a range of social issues such as poverty alleviation, education, pollution control, etc. Making good use of financial policy and applying innovation to existing financial systems can generate positive outcomes for society. This article is to discuss the case of green credit policy in China. This policy was jointly announced in 2007 by financial and environmental regulators. According to this policy, banks were encouraged to give more loans to environmental friendly companies than to others. Such policy has made great progress, and it became a more formal document entitled ‘Green Credit Guideline’ in 2012. This guideline included a comprehensive definition on green credit and specified several requirements at practical levels. Despite the great success, challenges of implementing such policy still remain. First, information about corporate environmental performance is insufficient; second, market incentives for green credit policy are not high enough; third, most banking staff lack knowledge and capacity to handle environmental affairs. Nevertheless, this case still sheds light on how financial policy innovation drives social changes. The key is to identify the connection between social issues and financial issues, and then to make a business case that creates pressures or incentives for financial institutions. This requires a market where social and environmental cost is appropriately priced and internalized to those who generate it. Ideally, financial policies should help shape such a market so that society can share values created by financial institutions.     

Sexual Harassment in Casinos: Effects on Employee Attitudes and Behaviors

This study focuses on sexual harassment and job satisfaction, organizational commitment, and employee turnover among casino employees. It is the first study investigating sexual harassment in the gaming industry. Based on sex-role spillover theory it was expected that sexual harassment has less of an impact on casino employees than on employees in other industries. Six Reno, Nevada casinos participated in the study and 330 responses were generated from casino employees. The study results show that sexual harassment of and by casino employees is perceived to occur at about the same rate as in other industries. Sexually harassed employees were compared to employees who indicated that they had not been sexually harassed. Sexually harassed employees were less satisfied with their jobs and less committed to the organization. However, they were not more likely to quit their jobs. Sexually harassed employees tended to be younger, Caucasian, and in dealer positions. Hence, in addition to the well-publicized cost of sexual harassment lawsuits, the study shows that sexual harassment in casinos may well be the source of hidden costs important to human resources managers. A result of major interest was that employees who had been harassed held management responsible for not ensuring a work environment that is free of sexual harassment. Implications for casino management are discussed.     

A comprehensive policy analysis of and recommendations for senior center gambling trips

Gambling is one of the fastest growing industries in America. Public support is high for legalized gambling among all age groups. Because gambling is growing in popularity as an activity among those 65 and over, many senior centers are beginning to offer group trips to casinos and other gambling attractions such as dog tracks. This paper analyzes senior center casino gambling trips, with particular attention to the number of trips offered, how trips are funded, the policy implications of offering trips, and policy alternatives for state and local policymakers. Data for the study come from personal interviews with activity directors of 16 senior centers across Massachusetts and a formal survey of 30 additional senior centers in Central Massachusetts. Benefits of a new policy option, a public education strategy, are also reviewed.     

The Effect of Recessions on Gambling Expenditures

This article examines the influence of the business cycle on expenditures of three major types of legalized gambling activities: Casino gambling, lottery, and pari-mutuel wagering. Empirical results are obtained using monthly aggregated US per capita consumption time series for the period 1959.01–2010.08. Among the three gambling activities only lottery consumption appears to be recession-proof. This series is characterized by a vast and solid growth that exceeds the growth in income and the growth in other gambling sectors. Casino gambling expenditures show a positive growth during expansions and no growth during recessions. Hence, the loss in income during recessions affects casino gambling. However, income shocks which are not directly related to the business cycle do not influence casino gambling expenditures. Pari-mutuel wagering displays an overall negative trend and its average growth rate is smaller than the growth in income, especially during recessions. The findings of this article provide important implications for the gambling industry and for local governments.     

The Impacts of Gaming Expansion on Economic Growth: A Theoretical Reconsideration

This paper employs a general equilibrium framework to analyze the effects on economic growth of global expansions in casino gaming, which exports gambling services largely to non-residents. Both domestic and foreign investments in the gaming sector bring in not only substantial revenues but also positive spillover effects on related sectors and even on the entire local economy. However, an over-expansion of commercial gambling may lead to deterioration in the terms of trade with an adverse impact on real income. If this situation persists, it would not be impossible for immiserizing growth to occur. As a highly profitable sector, casino gaming may enable its operators to diversify out of this risk if they invest retained profits in non-gaming sectors to cash in on the spillover effects it has created. The gaming-dominant economy can then be directed on a more balanced and sustainable growth path, and will become less susceptible to business cycles. Indeed, economic experiences in the world’s major casino resorts are consistent basically with this argument for diversification. We believe that after the current global crisis fades away, economic growth and resulting surges in global demand for gambling services can provide further opportunities for the expansion of existing casino resorts and the development of new gaming markets.     

A Comprehensive Policy Analysis of and Recommendations for Senior Center Gambling Trips

Abstract

Gambling is one of the fastest growing industries in America. Public support is high for legalized gambling among all age groups. Because gambling is growing in popularity as an activity among those 65 and over, many senior centers are beginning to offer group trips to casinos and other gambling attractions such as dog tracks. This paper analyzes senior center casino gambling trips, with particular attention to the number of trips offered, how trips are funded, the policy implications of offering trips, and policy alternatives for state and local policymakers. Data for the study come from personal interviews with activity directors of 16 senior centers across Massachusetts and a formal survey of 30 additional senior centers in Central Massachusetts. Benefits of a new policy option, a public education strategy, are also reviewed.     

A Comparison of Ambient Casino Sound and Music: Effects on Dissociation and on Perceptions of Elapsed Time While Playing Slot Machines

This research examined the effects of a casino’s auditory character on estimates of elapsed time while gambling. More specifically, this study varied whether the sound heard while gambling was ambient casino sound alone or ambient casino sound accompanied by music. The tempo and volume of both the music and ambient sound were varied to manipulate temporal engagement and introspection. One hundred and sixty (males = 91) individuals played slot machines in groups of 5–8, after which they provided estimates of elapsed time. The findings showed that the typical ambient casino auditive environment, which characterizes the majority of gaming venues, promotes understated estimates of elapsed duration of play. In contrast, when music is introduced into the ambient casino environment, it appears to provide a cue of interval from which players can more accurately reconstruct elapsed duration of play. This is particularly the case when the tempo of the music is slow and the volume is high. Moreover, the confidence with which time estimates are held (as reflected by latency of response) is higher in an auditive environment with music than in an environment that is comprised of ambient casino sounds alone. Implications for casino management are discussed.     

Profiling a New Generation of Female Small Business Owners in New Zealand: Networking,Mentoring and Growth

The contribution of female small business owners to economic development in Western developed countries such as New Zealand, Australia, the United Kingdom, the United States and Canada, is generally under–researched and traditionally grounded in male norms. Increasingly policy–makers acknowledge that in countries like New Zealand where 85% of business employs five or less people, small business offers the greatest employment potential. Not enough is known, though, about the growth orientation and characteristics of female small business owners. This article reports findings from the largest empirical study of small business undertaken in New Zealand and provides inter–gender comparison between male and female small business owners and for intra–gender contrast between networked female small business owners and women who did not belong to a business network. The results showed that the networked women, who were in the main better educated and more affiliative by nature, were more expansionist than both other female small business owners and men. The networked women were also more likely to have a business mentor. The findings confound earlier research suggesting women are less growth–orientated and wish only to satisfy intrinsic needs from their businesses. The article concludes by discussing the need to acknowledge the heterogeneity of female small business and what this means for policy–makers when assessing their socio–economic potential.     

Conformity to masculine norms among treatment-seeking male problem gamblers

Men are more likely than women to engage in so-called ‘strategic’ forms of gambling, particularly wagering and casino table games, but the reasons for this preference are unclear. Previous research on male gender roles found that behaviours that are effective at establishing masculinity are those perceived as being risky, skill-based and public – which are also characteristic of these ‘strategic’ forms of gambling. The aim of the current study was to examine the possibility that men may be drawn to wagering and casino table games because these strategic forms of gambling are associated with masculinity. Seventy male treatment-seeking problem gamblers completed a survey on their perceptions of various forms of gambling, and a measure of conformity to masculine norms. Participants reported that being seen as skilled and intelligent, and acting in public were important motivators for both wagering and playing casino table games. Furthermore, individuals who engaged in wagering and casino table games displayed higher levels of conformity to masculine norms than those who preferred gambling on gaming machines. The findings have important implications for the regulation of gambling promotion, the encouragement of help-seeking, and the treatment of gambling disorders in men.     

The earned income tax credit and union formation: The impact of expected spouse earnings

Using the Survey of Income and Program Participation from 2001, 2004, and 2008 and federal and state variation in earned income tax credit generosity over time, I investigate how changes in expected household earned income tax credit benefits associated with marriage affect cohabitation and marriage behavior among low-income single mothers. I simulate a marriage market to predict potential spouse earnings for a sample of single mothers in order to estimate the potential losses or gains in earned income tax credit benefits upon marriage. Using multinomial logistic regressions, I then analyze how the anticipated loss in earned income tax credit benefits upon marriage affects the likelihood of marrying or cohabiting. Results suggest that the average earned income tax credit-eligible woman can expect to lose approximately US$1,300 in earned income tax credit benefits in the year following marriage, or about half of pre-marriage benefits. Single mothers who expect to lose earned income tax credit benefits upon marriage are 2.5 percentage points less likely to marry their partners and 2.5 percentage points more likely to cohabit compared to single mothers who expect no change or to gain earned income tax credit benefits upon marriage. Despite recent policy efforts to reduce the size of the marriage penalty embedded in the earned income tax credit structure, these results suggest that the earned income tax credit still creates distortions in marriage and cohabitation decisions among low-income single mothers.     

Deregulation and Cross-Border Substitution in Iowa's Riverboat Gambling Industry

When riverboat casinos began operating in Iowa in April 1991 a strict regulatory structure, consisting of mandated sailing, wagering and loss limits, and casino space restrictions, was imposed. The restrictions were removed in May 1994 after Illinois introduced riverboat gambling without space, betting, or loss limits. Using data on casino win and admissions in Iowa and Illinois, this study analyzes the impact that deregulation had on casino win, win per admission, and total admissions. The findings reveal that deregulation significantly increased casino win, win per admission, and total admissions in Iowa. Moreover, when focusing on the Quad Cities market, which encompasses both Iowa and Illinois casinos, deregulation is found to result in significant cross-border substitution. In addition, there is evidence that deregulation has partly resulted in existing gamblers losing more money as opposed to increasing the number of gamblers.     

Latent Class Analysis of Gambling Activities in a Sample of Young Swiss Men: Association with Gambling Problems,Substance Use Outcomes,Personality Traits and Coping Strategies

The study aimed to identify different patterns of gambling activities (PGAs) and to investigate how PGAs differed in gambling problems, substance use outcomes, personality traits and coping strategies. A representative sample of 4989 young Swiss males completed a questionnaire assessing seven distinct gambling activities, gambling problems, substance use outcomes, personality traits and coping strategies. PGAs were identified using latent class analysis (LCA). Differences between PGAs in gambling and substance use outcomes, personality traits and coping strategies were tested. LCA identified six different PGAs. With regard to gambling and substance use outcomes, the three most problematic PGAs were extensive gamblers, followed by private gamblers, and electronic lottery and casino gamblers, respectively. By contrast, the three least detrimental PGAs were rare or non-gamblers, lottery only gamblers and casino gamblers. With regard to personality traits, compared with rare or non-gamblers, private and casino gamblers reported higher levels of sensation seeking. Electronic lottery and casino gamblers, private gamblers and extensive gamblers had higher levels of aggression-hostility. Extensive and casino gamblers reported higher levels of sociability, whereas casino gamblers reported lower levels of anxiety–neuroticism. Extensive gamblers used more maladaptive and less adaptive coping strategies than other groups. Results suggest that gambling is not a homogeneous activity since different types of gamblers exist according to the PGA they are engaged in. Extensive gamblers, electronic and casino gamblers and private gamblers may have the most problematic PGAs. Personality traits and coping skills may predispose individuals to PGAs associated with more or less negative outcomes.     

Farm business and the development of alternative farm enterprises: An empirical analysis in Greece

The objective of this paper is to provide a conceptual framework and an empirical evidence of farm business change in relation to the adoption and development of alternative farm enterprises (AFE). The present paper adopts a business typology and looks at the various paths of development. A range of factors condition which path of farm business development will be selected. Some factors relate to the farms' physical characteristics, its business and its human capital. A sample of 200 farmers in the prefecture of Etolia-Akarnania in Greece is analysed in order to identify the factors influencing the choice of farm business development. Three main paths of farm business development are identified in this lagging region of Greece. Conventional (mainstream) farming, alternative farm enterprise development and conventional farming with off-farm employment. Appropriate statistical modelling revealed that both economic and social factors exert an independent effect on the choice of farm business development. Proposals concerning the formulation of future rural policy in the lagging regions of Greece are drawn, based on the results derived from the analysis of the present sample.     

Gambling Motivation and Passion: A Comparison Study of Recreational and Pathological Gamblers

The aim of this study was to examine the structural relationship among gambling motivation, gambling passion, and behavioral intentions to gamble between recreational and pathological gamblers. Specifically, this study aimed to shed light on the different ways in which gambling motivation and affective attitude are associated with recreational and pathological gamblers. Using a purposive sampling method, 400 subjects were selected for and participated in this study during their visits to a casino. Study results echoed the notion of distinctive and separate gambling motivations and passions between recreational and pathological gamblers. Also, results identified specific areas to which casino operators or policy makers should pay special attention in developing effective marketing strategies to promote responsible gambling.