The Inside and Outside Revenue Impact of Regional Gambling Taxes in Spain
- Andrés Leal is an economist in the Department of Economy and Employment, Government of Aragón, Plaza de los Sitios, 7, 3a planta, 50001 Zaragoza, Spain. His e-mail address is: firstname.lastname@example.org. Julio López-Laborda is a professor in the Departament of Public Economics, Universidad de Zaragoza, Gran Vía, 2, 50.005 Zaragoza, Spain. His e-mail address is: email@example.com. Fernando Rodrigo is a lecturer in the Departament of Public Economics, Universidad de Zaragoza, Gran Vía, 2, 50.005 Zaragoza, Spain. His e-mail address is: firstname.lastname@example.org. The authors wish to thank Silvia Guallar for her research assistance, Daniel Arribas, and the reviewers and editor of this special issue for their suggestions, and the Government of Aragon and the European Social Fund for financial help. Julio López-Laborda and Fernando Rodrigo gratefully acknowledge the financial support from the Ministry of Economy and Competitiveness (project ECO2012-37572) and the sponsorship of the Fundación Economía Aragonesa, FUNDEAR. A preliminary version of this paper was presented at the XVIII Encuentro de Economía Pública, held in Málaga on 3–4 February 2011.
Using panel data methods, for all the Spanish Autonomous Communities and for the period 1999–2009, the present study estimates the revenue of the casinos in each Autonomous Community on the basis of four variables of interest related to the taxation of gambling in each Community, the taxation in the neighboring Autonomous Communities and the expansion of online gambling, and certain economic and sociodemographic control variables. The estimation performed permits the verification of the hypotheses that the taxation of gaming in a region and the expansion of online gambling negatively affect the revenue accrued by the casinos located in that region, but does not offer evidence that the effect produced by the differences in taxation among neighboring regions is significant. The results obtained also confirm the expected impact on the casinos' revenue of the existence of “type” gamblers (young males, and tourists) and of the economic situation (income and unemployment).