Crime in Atlantic City: Do casinos make a difference?

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Abstract
In November, 1976 a constitutional referendum in the state of New Jersey legalized casino gaming. This paper examines the impact of this action on crime in Atlantic City, the only location in the state where gambling is permitted. More specifically, the analysis looks at the incidence of FBI index crimes in that jurisdiction in two basic ways. First, the work examines the raw numbers and rate of crime in the city, both before and after the introduction of casino gambling. Although the analysis establishes that the raw figures show that there has been a significant increase in index crimes, it is argued that using these statistics as a measure of crime in Atlantic City is misleading because they fail to take into account the numerous visitors to the city when calculating the population‐at‐risk and because they do not differentiate between crime that occurs in the community and that which occurs in the casinos. The second phase of the analysis addresses these issues through the use of adjusted populations and data that identify casino‐based versus non‐casino crimes. This analysis leads us to conclude that the legalization of gambling has not resulted in a significant increase in index crimes in Atlantic City.
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