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The Relationship Between Betting And Lottery Play

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  • DAVID FORREST
  • O. DAVID GULLEY
  • ROBERT SIMMONS

Abstract

We apply a novel daily time series data set of daily turnover from one of Britain’s leading bookmakers to analyze potential substitution between lottery play and bookmaker betting. We find some evidence that bettors do substitute away from horse race, soccer and numbers betting when the effective price of lottery tickets is unusually low, that is, when there is a rollover or other special draw. This substitution has a highly specific pattern of timing that varies by sector. Our results further suggest that bettors rationally engage in forward‐looking substitution within their betting portfolios. (JEL D12, L83)

Suggested Citation

  • David Forrest & O. David Gulley & Robert Simmons, 2010. "The Relationship Between Betting And Lottery Play," Economic Inquiry, Western Economic Association International, vol. 48(1), pages 26-38, January.
    • Handle: RePEc:bla:ecinqu:v:48:y:2010:i:1:p:26-38
    DOI: 10.1111/j.1465-7295.2008.00123.x
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    References listed on IDEAS

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    1. Paton, David & Siegel, Donald S. & Williams, Leighton Vaughan, 2004. "Taxation and the Demand for Gambling: New Evidence From the United Kingdom," National Tax Journal, National Tax Association;National Tax Journal, vol. 57(4), pages 847-861, December.
    2. Lisa Farrell & Edgar Morgenroth & Ian Walker, 1999. "A Time Series Analysis of U.K. Lottery Sales: Long and Short Run Price Elasticities," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(4), pages 513-526, November.
    3. repec:bla:obuest:v:61:y:1999:i:4:p:527-44 is not listed on IDEAS
    4. Conlisk, John, 1993. "The Utility of Gambling," Journal of Risk and Uncertainty, Springer, vol. 6(3), pages 255-275, June.
    5. Thalheimer, Richard & Ali, Mukhtar M., 1995. "Intertrack wagering and the demand for parimutuel horse racing," Journal of Economics and Business, Elsevier, vol. 47(4), pages 369-383, October.
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    Cited by:

    1. Brad R. Humphreys, 2021. "Legalized Sports Betting, VLT Gambling, and State Gambling Revenues: Evidence from West Virginia," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 47(1), pages 9-28, January.
    2. Babatunde Buraimo & Neil Coster & David Forrest, 2020. "Spectator demand for the sport of kings," Working Papers 202006, University of Liverpool, Department of Economics.

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism

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