Casino Gambling in Illinois: Riverboats, Revenues, and Economic Development

Abstract

Advocates of legalization maintain that casino gaming is a key destination attraction that can stimulate and revitalize a community's economy, particularly its tourism industry. However, the primary political motivation to legalize gambling appears to be to capture the tax revenues it generates. The goals of legalized gaming are to attract tourists and to keep residents and their money at home. This study investigated the early Illinois experience with casino gambling and assessed the impact of gambling on businesses in riverboat communities in the state. The findings suggest that riverboat gambling in Illinois has not stimulated economic development and tourism to the degree that had been advertised and expected. Policymakers should consider methods of tying legalized gaming licenses with capital investments in order to accomplish their developmental goals.