The demand for gaming in Australia: An application of quaids

A theoretical model is developed, which resolves the conflict between observed gaming behaviour and Neoclassical rational agent theory. This model provides testable hypotheses regarding the participation in various types of gaming activities and the welfare effects of taxation on gaming. The demographic and socio-economic determinants of demand for gaming in Australia are measured using the parametric QUAIDS model. Based on the econometric results, the regressivity of gaming taxes is calculated using income elasticities of the budget share of gaming expenditures. Results obtained provide strong support for the theoretical model, and provide evidence to support the position that reliance upon gaming taxation receipts by Australian State Governments may lead to an increasingly regressive State based taxation system.