Abstract
AbstractWe provide evidence that casino openings can have spillover effects on an individual's portfolio risk‐taking. Using investor‐level brokerage data and the initial legalization and opening of commercial casinos in the United States as a quasi‐natural experiment, we find that, after a casino opens in close geographical proximity to investors, those with a high propensity to gamble (PTG) increase their idiosyncratic portfolio risk by 12.88% relative to those unlikely to gamble. This effect lasts for approximately 3 months and does not affect systematic portfolio risk. These results suggest that increased access to gambling can temporarily increase portfolio risk‐taking for those with a PTG.
Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
