POLICY, PARTICIPATION AND REVENUE IN WASHINGTON STATE LOTTO

Abstract

The main result of this paper is to develop and exhibit a model of state lotto sales, both for a single drawing and for the dynamic structure of the game as the jackpot accumulates. The main policy result is that a decision to reduce the odds of winning in an effort to generate more interest in Lotto will work whether or not the large jackpots change public attitudes about tickets. However, there is no clear way to choose among that and other revenueenhancing measures.