chapter  7
The economics of casino taxation
ByHasret Benar, Glenn P. Jenkins
Pages 11

Casinos have had a long history as a source of

entertainment, excitement and heartbreak. Because of

the incidence of the compulsive gambling and

associated crime, most states have tried to regulate

the spread of casinos and in some instances have tried

to control who is allowed to gamble in the casinos.

Taxation has often been one of the tools used for the

regulation of this sector. While casinos have been a feature of entertainment

in well-known holiday centres such as Las Vegas,

Monaco and Macau for decades, since the 1980s

casinos have spread rapidly elsewhere. In some

countries, such as Canada and Chile, they have

been used as a source of revenue for financing

municipal and charitable activities. In particular, a

rapid expansion of the casino industry has taken

place in those countries where they are a part of the