Estimating Casino Expenditures by Out-of-State Patrons: Native American Gaming in Connecticut

Abstract

Congress's passage of the Indian Gaming Regulatory Act of 1988 led to the proliferation of Native American casinos in the 1990s. This study uses patron origination analysis to investigate the substitution effect surrounding Indian gaming in Connecticut. A survey of automobiles (n = 13,383) and buses (n = 384) was conducted to determine the state of origin of casino patrons. The majority of customers at both the Foxwoods (71.7%) and Mohegan Sun (54.0%) casinos were from states other than Connecticut. Massachusetts's residents were the most frequent out-of-state visitors at both facilities (36.0% and 22.8%, respectively). These data were used to estimate out-of-state patrons' expenditures at the Connecticut casinos. Out-of-state visitors contributed 66% of gross revenue, approximately $1.28 billion, at Foxwoods and the Mohegan Sun during 1999. Implications for policymakers in casino and noncasino states are provided.