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Less Gun Dealers, Less Crime

The Drop in Federally Licensed Firearms Dealers in the Midwest

Section Four: The Drop in Gun Dealers

As a result of the new licensing requirements and ATF's increased scrutiny of licensees, the number of Type 1 FFLs in the United States has dropped 72 percent—from 245,628 in 1994 to 69,591 in 2000. In the Midwest, the number of dealers has dropped 70 percent, from 63,219 to 19,076. Illinois led the region with a 75 percent reduction, while Michigan was first in terms of number decrease of FFLs with 8,782.7 For information on all midwestern states, see Figures One and Two.

Figure One: Number and Percent Decrease of Type 1 FFLs in the Midwest, January 1994 to January 2000

State Total of Type 1 Federal Firearms License (FFL) Holders, January 1994 Total of Type 1 Federal Firearms License (FFL) Holders, January 2000 Number Decrease From 1994 to 2000 Percent Decrease From 1994 to 2000
Illinois 8,959 2,227 6,732 75%
Indiana 5,872 1,970 3,902 66%
Iowa 3,877 1,371 2,506 65%
Kansas 3,653 1,128 2,525 69%
Michigan 12,076 3,294 8,782 73%
Minnesota 5,741 1,935 3,806 66%
Missouri 7,624 2,360 5,264 69%
Ohio 9,464 2,891 6,573 69%
Wisconsin 5,953 1,900 4,053 68%
Total 63,219 19,076 44,143 70%

 

As the number of dealers in the United States dropped, the percentage of kitchen-table dealers also fell. In 1998, 56 percent of Type 1 FFLs operated out of residential premises, down from 74 percent in 1992. The number of inactive FFLs has dropped as well. In 1998, 31 percent of licensees had not sold a gun in the previous year, down from 46 percent in 1992.8

Go to Section Five: What Next?

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The Violence Policy Center is a national non-profit educational foundation that conducts research on violence in America and works to develop violence-reduction policies and proposals. The Center examines the role of firearms in America, conducts research on firearms violence, and explores new ways to decrease firearm-related death and injury.