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The social value of gambling: surplus estimates by gambling types for France

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  • Maxence Miéra

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Sophie Massin

    (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Vincent Eroukmanoff

    (Observatoire français des drogues et des tendances addictives, Paris)

Abstract

We estimate the social surplus of gambling in France by adding three components: consumer surplus, producer surplus and taxation revenue. To estimate consumer surplus, we use the rational benchmark approach, which attributes a loss of welfare (i.e. a negative surplus) to problem gamblers depending on their level of excess spending compared with recreational gamblers. Using data for the year 2019 and considering only legal gambling, we find that the consumer surplus is negative for the gambling activity as a whole. When we add the producer surplus and the taxation revenue to the consumer surplus, we find that the social surplus is more likely to be negative, ranging from − 45 billion euros in the pessimistic scenario to + 6 billion euros in the optimistic scenario. There are, however, important differences between gambling types. The social surplus is negative in all scenarios for poker and sports betting. Conversely, it is positive in all scenarios for draw lotteries and scratch cards.

Suggested Citation

  • Maxence Miéra & Sophie Massin & Vincent Eroukmanoff, 2023. "The social value of gambling: surplus estimates by gambling types for France," Post-Print hal-03972103, HAL.
    • Handle: RePEc:hal:journl:hal-03972103
    DOI: 10.1007/s10198-022-01560-9
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    References listed on IDEAS

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    1. Craig Arthur Gallet, 2015. "Gambling Demand: A Meta-Analysis Of The Price Elasticity," Journal of Gambling Business and Economics, University of Buckingham Press, vol. 9(1), pages 13-22.
    2. Sophie Massin & Maxence Miéra, 2020. "Measuring consumer surplus in the case of addiction: A re-examination of the rational benchmark algebra," Economics Bulletin, AccessEcon, vol. 40(4), pages 3171-3181.
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    5. Fiedler, Ingo & Kairouz, Sylvia & Costes, Jean-Michel & Weißmüller, Kristina S., 2019. "Gambling spending and its concentration on problem gamblers," Journal of Business Research, Elsevier, vol. 98(C), pages 82-91.
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