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Wichita Falls Bingo Kinder Scholarship

Wichita Falls Bingo Kinder Scholarship, Analysis of the relationship between gambling and bankruptcy based on cross-sectional data is limited in several important respects. Reported statistics do not hold constant other factors like unemployment or divorce that could also contribute to bankruptcy problems. The decisions of casinos to locate in Gary, Indiana; Atlantic City, New Jersey; Detroit, Michigan; East St. Louis, Illinois; three mining towns in Colorado; and Deadwood, South Dakota; were largely motivated by a desire to stimulate economic activity in distressed areas. The tendency for distressed areas to seek casinos might explain a correlation between gambling and bankruptcy. Furthermore, high bankruptcy rates for states that allow gambling do not suggest a causal relationship between gambling and bankruptcy unless the introduction of gambling coincided with an increase in the state bankruptcy rate. Time series regressions presented in Treasury Department (1999) reveal that neither the introduction of casino gambling in New Jersey nor the introduction of casino gambling in Mississippi in 1992 coincided with an increase in the state bankruptcy rate. The bankruptcy rate in New Jersey remained on par with the national bankruptcy rate until the 1990s, and the bankruptcy rate in Mississippi rose above the national bankruptcy rate until the 1990s, and the bankruptcy rate in Mississippi rose above the national average in the 1990s prior to the introduction of casino gambling. Other examples providing little evidence of a relationship between gambling and bankruptcy can be observed by examining state bankruptcy rates.

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