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Benjamin Alamar, PhD, Center for Tobacco Control Research & Education, University of California at San Francisco, 530 Parnassus Ave, San Francisco, CA 94143, 415 476 3139, bala7450@itsa.ucsf.edu, Lev L. Mandel, MSc, Center for Tobacco Control Research and Education, UCSF, 530 Parnassus Ave. Suite 366, San Francisco, CA 94143, and Stanton A. Glantz, PhD, University of California, San Francisco, Center for Tobacco Control Research & Education, 530 Parnassus Ave., Suite 366, San Francisco, CA 94143-1390.
Objective: To determine the effects of the Delaware smokefree ordinance on state revenue from gaming.
Methods: Regression techniques are used to analyze state gaming revenue. We estimated the effects of the smokefree ordinance on state revenue per gaming machine using monthly data from January, 1996 - December 2003. The effects of the smokefree policy were estimated by using the number of months the smokefree ordinance was in effect. The smokefree policy variable was set to 0 prior to the policy going into effect and reports the total number of months the policy has been in effect thereafter. We controlled for economic and time trends using years and total annual Delaware tax receipts.
Results: We estimated the monthly effect from the smokefree policy on average state revenues per machine. From this estimate, we calculated that after one year, the smokefree policy increased state revenue from gaming by $5.7 million. The $5.7 million is equivalent to a 3% increase in state revenue from gaming.
Conclusion: The results of the regression analysis demonstrate that the smokefree ordinance had a positive effect on tax revenue for the state of Delaware. The results are consistent across several different model specifications. Previous studies have also found both no effects and positive effects from smokefree ordinances for restaurants, bars and bingo. Whereas both the tobacco and gaming industries claim that smokefree ordinances will harm the hospitality industry, the consistency of these results across studies and sectors of the hospitality industry shows that smokefree ordinances are good for the hospitality industry.
Learning Objectives: At the conclusion of the session, the participants will be able to
Keywords: Tobacco Policy, Economic Analysis
Presenting author's disclosure statement:
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.