Bank Secrecy Act and Casinos’ Performances

Abstract

This study examines the impact of BSA on casino industry’s market performance and accounting performance. Results show that the huge gaps in casino performances before BSA have been reduced since BSA. Specifically, pre-BSA, Nevada casinos had lower market performance but higher accounting performance than those casinos in the other states; post-BSA both measures for these two groups of casinos come closer. Results suggest that BSA has been effective in leveling the operating fields for the casino industry, and the improvement of Nevada casinos’ market performance suggests that adoption of BSA is conducive to their reputation recovery.