Agglomeration Spillovers from Native Nations: Evidence from Casino Reopenings

Abstract

We quantify agglomeration spillovers created by tribally owned casinos located on federally recognized reservations by comparing changes in visitor counts among businesses located near a casino that reopened after COVID-19 stay-at-home orders were lifted and businesses located near a casino that remained closed. We find large and robust effects of casino reopening on visitor counts to businesses within one and a half miles away from reopened casinos. The spillovers are largely isolated to the hospitality industry. We also find that nearby, off-reservation businesses saw an increase in visitors when a nearby casino reopened. Taken together, nearby businesses located both on and off reservations benefit from the shared demand created by tribal casinos.