Do urban casinos affect nearby neighbourhoods? Evidence from Canada

We analyse the effect of new casinos on nearby neighbourhoods using data from casinos opened in Canada between 1986−2007. We find no evidence linking casino openings to nearby population growth or changes in residents' income, composition by age, gender, marital status, and home ownership status. We find evidence of negative casino effects on the growth of housing values and rent. The effect is substantial near casinos, a nearly 8 percentage-point loss in the growth of home values over 5 years, but has limited influence and dissipates quickly over distance. The estimated effect on housing rents is comparable in terms of standard deviation.