Smoke-Free Law Did Affect Revenue from Gaming in Delaware

FRB of St. Louis Working Paper No. 2005-028B

11 Pages Posted: 29 Jul 2005

See all articles by Michael R. Pakko

Michael R. Pakko

Arkansas Economic Development Institute

Date Written: June 2005


A paper recently published in the journal Tobacco Control purports to show that the implementation of a smoking prohibition in Delaware had no statistically significant effect on the revenues of three gaming facilities in that state. After undertaking a thorough analysis of the data, I find that the smoke-free law did affect revenues from gaming in Delaware. Total gaming revenues are estimated to have declined by at approximately $6 1/2 million per month after the implementation of Delaware's Clean Indoor Air Law. This represents a loss nearly 13% relative to average monthly revenues in the year preceding the smoking ban.

Keywords: Gambling, smoking, revenues, slot-machines

JEL Classification: L83, I18

Suggested Citation

Pakko, Michael R., Smoke-Free Law Did Affect Revenue from Gaming in Delaware (June 2005). FRB of St. Louis Working Paper No. 2005-028B, Available at SSRN: or

Michael R. Pakko (Contact Author)

Arkansas Economic Development Institute ( email )

2801 South University Avenue
Little Rock, AR 72204
United States
501-569-8541 (Phone)
501-569-8538 (Fax)

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