The effects of casino proximity and time on poverty levels in New York City

Abstract

The effect of casino proximity and time on poverty levels in New York City examines levels of poverty over a 5-year duration for urban casino communities under the theoretical dimensions of exposure and adaption. Links between casino proximity and problem gambling or other gambling-related problems that could adversely impact individuals in disadvantaged communities were reported before the influx of urban casinos in major metro areas. This analysis uses Public Use Microdata Samples (PUMS) from the American Community Survey (ACS) estimates. A two-way factorial ANOVA measured poverty-level outcomes at high and low casino proximity in year 1 and year 5 after an urban casino had been opened. No significant interaction was found between casino proximity and year for poverty-level outcomes. The hypothesis that levels of poverty defined as PUMS score in urban casino communities and two levels of casino proximity in the New York metro area for the first and fifth year after the casino had been opened would not report statistically significant changes was supported. Higher poverty-level outcome scores were reported at closer distances measured as high casino proximity with approximately the same reported scores for year 1 and year 5, suggesting that closer distances to a casino despite the lifespan of the casino could influence poverty levels and other potential socio-economic factors. Contextualizing the findings in the exposure and adaptation theory frameworks suggests that exposure to a casino can have adverse consequences based on the increase in poverty-level outcome scores. Conversely, adaptation, which could occur over time, typically at the 5-year mark of operation, was not indicated due to the negligibility of poverty-level scores between year 1 and year 5; thus, refuting adaptation theory. This research expands the literature on urban casino proximity in the context of exposure and adaptation theory. Implication of these results provide the broader community of legislators, community workers, scholar-practitioners, preventionists, and industry with a better understanding of the phenomenon, and any potential adverse consequences to host and neighboring communities so that policy, intervention, prevention, and treatment can be implemented well before a casino opens.