The Effectiveness of Sinking Lid Policies in Reducing Gambling Expenditure

Sinking lids are designed to gradually reduce machine caps by prohibiting the transfer of gaming licenses. This study leverages variation in the geography and timing of local policy interventions to estimate the effect of sinking lids on gambling expenditure. Results suggest that sinking lids reduce gambling expenditure by 13% relative to regions not adopting policies beyond national-level restrictions.

Journal: Journal of Gambling Studies

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