THE OXFORD HANDBOOK OF
THE ECONOMICS
OF GAMBLING
Edi ted by
LEIGHTON VAUGHAN WILLIAMS
and
DONALD S. SIEGEL
OXFORD UNIVERSITY PRESS CONTENTS
Contributors ix Introduction xiii
SECTION I CASINOS
1. The Employment Impact of Casino Gambimg in the U.S. 3 GARY ANDERS
2. The Economics of Casino Taxation 18 JOHN E. ANDERSON
3. The Elasticity of Casino Gambling 37 MARK W. NICHOLS AND MEHMET SERKAN TOSUN
4. The Economics of Asian Casino Gaming and Gambling 55 RICARDO CHI SEN SIU
5. How does Implementation of a Smoking Ban Affect Gaming? 87 JOHN C. NAVIN, TIMOTHY S. SULLIVAN, AND WARREN D. RICHARDS
6. Overview of the Economic and Social Impacts of Gambling in the United States 108 DOUGLAS M. WALKER
SECTION II SPORTS BETTING
7. The Economics of Online Sports Betting 131 GEORGE DIEMER AND RYAN M. RODENBERG
8. The Football Pools 147 DAVID FORREST AND LEVI PÄREZ
9• The Efficiency of Soccer Betting Markets 163 JOHN GODDARD Vi CONTENTS
10. The Efficiency of Pelota Betting Markets 172 LORETO LLORENTE, JOSEMARI AIZPURUA, AND JAVIER PUERTOLAS
11. The Lure of the Pitcher: How the Baseball Betting Market Is Influenced by Elite Starting Pitchers 194 RODNEY J. PAUL, ANDREW P. WEINBACH, AND BRAD R. HUMPHREYS
12. Information Efficiency in High-Frequency Betting Markets 210 J. JAMES READE AND JOHN GODDARD
SECTION III HORSE RACE BETTING
13. On the Long-Run Sustainability of Tote Betting Markets 235 DAVID EDELMAN
14. The Economics of Racetrack-Casino (Racino) Gambling 241 RICHARD THALHEIMER
15. The Modern Racing Landscape and the Racetrack Wagering Market: Components of Demand, Subsidies, and Efficiency 256 RAMON P. DEGENNARO AND ANN B. GILLETTE
16. What Explains the Existence of an Exchange Overround? 276 DAVID MARGINSON
17. Insider Trading in Betting Markets 298 ADI SCHNYTZER
18. Pricing Decisions and Insider Trading in Fixed-Odds Horse Betting Markets 316 ADI SCHNYTZER, VASILIKI MAKROPOULOU, AND MARTIEN LAMERS
SECTION IV BETTING STRATEGY
19. Betting on Simultaneous Events and Accumulator Gambles 341 ANDREW GRANT
20. A Primer on the Mathematics of Gambling 370 ROBERT C. HANNUM
21. The Science and Economics of Poker 387 ROBERT C. HANNUM CONTENTS VÜ
22. The Kelly Criterion with Games of Chance 4°2 LEONARD C. MACLEAN AND WILLIAM T. ZIEMBA
23. Exploiting Expert Analysis? Evidence from Event Studies in an Information-Rich Market Environment 428 MICHAEL A. SMITH
SECTION V MOTIVATION, BEHAVIOR AND DECISION-MAKING IN BETTING MARKETS
24. Betting Motivation and Behavior 451 ALISTAIR BRUCE
25. Motivation in Betting Markets: Speculation, Calculus, or Fun? 474 LES COLEMAN
26. Evidence of Biased Decision-Making in Betting Markets 487 DAVID MCDONALD, MING-CHIEN SUNG, AND JOHNNIE JOHNSON
27. Behavioral Finance and Point Spread Wagering Markets 518 GREG DURHAM
SECTION VI PREDICTION MARKETS AND POLITICAL BETTING
28. A Simple Automated Market Maker for Prediction Markets 543 DAVID JOHNSTONE
29. The Long History of Political Betting Markets: An International Perspective 560 PAUL W. RHODE AND KOLEMAN STRUMPF
SECTION VII LOTTERIES AND GAMBLING MACHINES
30. The Efficiency of Lottery Markets 589 DAVID FORREST AND O. DAVID GULLEY
31. The National Lottery 6x1 JOHN LEPPER AND STEPHEN CREIGH-TYTE VÜi CONTENTS
32. The Benefits and Costs of Slot Machine Gambling 637 SCOTT FARROW AND CHAVA CARTER
33. The Economics of Lotteries: A Survey of the Literature 670 KENT GROTE AND VICTOR A. MATHESON
34. The Taxation of Gambling Machines: A Theoretical Perspective 692 LEIGHTON VAUGHAN WILLIAMS AND DAVID PATON
Name Index 701
General Index 703