Gambling with Hawaiian Home Land: The Potential Effects of a Casino in Hawaii on Income Differences between Native and Non-Native Populations Open Access

Abstract

Abstract

Gambling with Hawaiian Home Land: The Potential Effects of a Casino in Hawaii on Income Differences between Native and Non-Native Populations

Kathryn Sumie Lee

Using data on Native American reservation counties, this paper provides the first empirical study
of the proposed casino in Hawaii as outlined in Hawaii House Bill 1227, which would establish a
casino on Native Hawaiian Home Land and allocate generated revenue to the Native Hawaiian
Home Land trust fund. The results indicate that the number of "Las Vegas-style" casinos
decrease the household income gap between native and non-native peoples and the presence of
three or more "Las Vegas-style" casinos raise household income for native people. A discussion
on cultural issues in Hawaii which will factor into the approval of a gaming venture is detailed in
the conclusion.

Table of Contents

Table of Contents

I. Introduction 1
II. Background 3
A. Why Casinos May Affect Income Differences 3
B. History of Native American Gaming 4
C. How Native Gaming Could Have an Effect 6
III. Data and Empirical Methods 8
A. Difference in Differences Estimation 8
B. Data Collection 9
IV. Results 12
V. Conclusion 15
References 18
Table 1: Selected Summary Statistics 20
Table 2: Difference in Mean Household Income 20
Table 3: Regression Results for Tribal Casino Explanatory Variables 21
Table 4: Regression Results without Employment Explanatory Variables 22
Table 5: Regression Results without Education Explanatory Variables 23
Table 6a: Class II Variable Effect on Income Gap 24
Table 6b: Class III Variable Effect on Income Gap 25
Table 7: Class III Casino Variable Effect on Household Income for NA and W 26
Table 8: Class III Casino Counter Effect on Household Income for NA and W 26
Table 9: Full Regression Results from Table 7 27
Table 10: Full Regression Results from Table 8 28
Figure 1. Native American Casino Counties: 1969-1979 29
Figure 2. Native American Casino Counties: 1979-1989 29
Figure 3. Native American Casino Counties: 1989-1999 30
Figure 4. Native American Casino Counties: 1999-2009 30

About this Honors Thesis

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School	Emory College
Department	Economics
Degree	BA
Submission	Honors Thesis
Language	English
Research Field	Economics, General
Keyword	Income Differences Tribal Gaming Hawaii Economics
Committee Chair / Thesis Advisor	Frisvold, David, Emory University
Committee Members	Su, Xuejuan , Emory University Moore, Judy Raggi, Emory University

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