The tax incidence of casino gaming in mississippi

1995, the state collected a combined total of $256.9 million in gamingfees and taxes from the casino industry. The $128.6 million received in FY 1995 equated to 5.04% of the state’s generalfund revenue. This study determines the tax incidence of casino gaming in Mississippi for the eight casino counties and the remaining noncasino counties, taking into account accessibility to casino play. During April 23, 1995, and April 27, 1995, a telephone survey produced 397 and 410 usable responses from casino counties and noncasino counties, respectively. Using log-linear regression analysis, it was found that although the tax incidence was regressive for both populations, a more regressive tax ensued from counties with casino gaming. This research provides additional evidence to the theory that once readily available, the poor become more attracted to gaming endeavors. The decade of the 1980s was a mixed blessing for the state of Mississippi. Progress in public education, environmental quality, and general welfare was accompanied by fiscal stress (Clynch 1988). Taxpayers demanded an increase in governmental services but simultaneously balked at the idea of higher taxes. In 1990, to avoid a mandatory tax increase and to abate fiscal stress, the Mississippi legislature passed the Gaming Control Act legalizing dockside casino gaming as a surrogate tax system for the state. Conditional upon local approval, the bill allows counties bordering the Mississippi River and the Gulf Coast to legalize gaming. Fourteen counties are eligible for gaming, and half currently house casinos. There is one inland county casino in Mississippi, but it is on a Choctaw Reservation and operates under the auspices of the federal government (Clynch and Rivenbar