State Lottery Sales: Separating the Influence of Markets and Game Structure

Abstract

ABSTRACT State lotteries are the fiscal gimmick for the 1980s, receiving widespread popular and legislative approval. Unfortunately, the impact of structural and external influences on lottery sales is not well understood. This analysis sheds light on these influences, demonstrating that state economic activity, age of the game, interstate lottery competition, and game portfolios significantly affect sale and, consequently, benefit to the state.