New Casinos and Local Labor Markets: Evidence from Canada

The local labor market effects of new casinos are examined by comparing the employment and earnings growth in areas with new casinos to the growth in areas with existing casinos and without casinos, exploiting numerous casino openings across multiple locations in Canada over several time periods. The opening of a new casino directly doubles the employment and earnings of the local gambling industry within five years, while the growth does not appear to continue beyond this period. Indirect positive spillovers are limited to the related local hospitality and entertainment industries. For every job created in the gambling industry, roughly one to two additional hospitality jobs are created. Increased gambling employment does not appear to increase employment in any other local industry.