Nothing Special   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/buc/jgbeco/v3y2009i2p37-62.html
   My bibliography  Save this article

New Evidence on the Link Between Government Subsidies and Wagering

Author

Listed:
  • Ramon P. DeGennaro
Abstract
The total volume of wagering on horse racing is important because it affects both racetrack and state revenues. This paper uses both daily data and data from individual races to explore the influence of a particular government subsidy, the sire stakes, on the racing industry. Previous work using daily data has found that this subsidy has no statistically reliable influence on the volume of wagering and that it amounts to a direct transfer from taxpayers to the breeding industry. My much larger sample of daily data produces the same result, but using new data from individual races, the results differ: I find a small but statistically significant increase in wagering on subsidized races. The increase is probably just too small to be detected in daily data. My results suggest, though, that the economic significance of the increase is almost surely too little to recoup the government's investment fully. For subsidized races to be a good use of taxpayers' money, then either taxpayers must derive other benefits or else the state must generate additional revenue because of the subsidy. I list several possible avenues to make that argument. I also suggest public goods that the industry might produce.

Suggested Citation

  • Ramon P. DeGennaro, 2009. "New Evidence on the Link Between Government Subsidies and Wagering," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 3(2), pages 37-62, September.
    • Handle: RePEc:buc:jgbeco:v:3:y:2009:i:2:p:37-62
    as

    Download full text from publisher

    File URL: http://www.ubplj.org/index.php/jgbe/article/view/545
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    REAL OPTIONS; SWITCHING OPTIONS; BETTING; ODDS; GAME;
    All these keywords.

    JEL classification:

    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:buc:jgbeco:v:3:y:2009:i:2:p:37-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dominic Cortis, University of Malta (email available below). General contact details of provider: http://www.ubpl.co.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.