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Agglomeration Spillovers from Native Nations: Evidence from Casino Reopenings

Authors

Elliot Charette Senior Research Assistant, Center for Indian Country Development
Matthew Gregg Senior Economist, Center for Indian Country Development
Alice Tianbo Zhang International Monetary Fund
Agglomeration Spillovers from Native Nations: Evidence from Casino Reopenings

Abstract

We quantify agglomeration spillovers created by tribally owned casinos located on federally recognized reservations by comparing changes in visitor counts among businesses located near a casino that reopened after COVID-19 stay-at-home orders were lifted and businesses located near a casino that remained closed. We find large and robust effects of casino reopening on visitor counts to businesses within one and a half miles away from reopened casinos. The spillovers are largely isolated to the hospitality industry. We also find that nearby, off-reservation businesses saw an increase in visitors when a nearby casino reopened. Taken together, nearby businesses located both on and off reservations benefit from the shared demand created by tribal casinos.