Video Gambling in South Carolina: An Experiment in Local Option Gambling

As in many Southern states, the expansion of the availability and forms of gambling has been a pressing issue in South Carolina. In 1994 South Carolina had the highest number of noncasino video gambling machines in the nation and each of the state's 46 counties was required to hold a referendum on continuing to permit cash payouts. The referendum passed in 34 counties. This unusual referendum permitted an analysis of the determinants of acceptance or rejection of gambling within a single state. Analysis of the voting outcomes revealed that the percentage voting in favor was significantly and positively related to population density (a proxy for urbanization) and to various measures of tourism activity.