Agglomeration Spillovers from Native Nations: Evidence from Casino Reopenings

Gaming establishments provide a significant source of revenue for tribal governments, but little is known about the impact of such large investments outside of reservations. Using high-frequency data from millions of mobile devices and the differential reopening dates of tribal casinos during the COVID-19 pandemic as a natural experiment, we find large and persistent effects of casinos' reopening on foot traffic to nearby businesses in complementary industries, such as hospitality and retail trade, located outside of reservation boundaries. Our results inform government revenue administration and resource allocation, making the case for stronger economic cooperation between tribal and state governments.