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Sports betting cannibalization: Evidence from Pennsylvania
Journal article   Peer reviewed

Sports betting cannibalization: Evidence from Pennsylvania

Joseph D. Nedved and Amir B. Ferreira Neto
Economics letters, Vol.245, p.112031
11-2024

Abstract

Cannibalization Gambling Sports betting
The repeal of the Professional and Amateur Sports Protection Act (PASPA) in 2018 resulted in the rapid introduction of sports betting into many U.S. markets. This study investigates the introduction of sports betting in Pennsylvania. We explore the staggered implementation of sports betting across casinos in Pennsylvania to analyze the impact of sports betting on slot gaming and table gaming. Our results show evidence that there is no short-term effect of sports betting on the revenues generated from slot gaming and tabling gaming demand, however, our results show some evidence of complementarity on the longer-term between sports betting and other gaming options. •We analyze the impact of sports betting introduction on slot gaming and table gaming in Pennsylvania.•Descriptive statistics suggest a decrease in slot gaming and table gaming revenues after the introduction of sports betting in the state.•Econometric results suggest no short-term effect, but potential longer-term effects from the introduction of sports betting, driving up both slot gaming and table gaming revenues.•Potential complementarity between sports and traditional betting have important tax revenues implications for the state.

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UN Sustainable Development Goals (SDGs)

This output has contributed to the advancement of the following goals:

#3 Good Health and Well-Being

Source: SDGs in the Output

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