Skip to main content
Log in

Can Demographic Variables Predict Lottery and Pari-mutuel Losses? An Empirical Investigation

  • Original Paper
  • Published:
Journal of Gambling Studies Aims and scope Submit manuscript

Abstract

Using data from the 2004 and 2005 Consumer Expenditure Surveys (CES) comprising of 15,000 respondents, this study examines two research questions. The first of these considers the demographic differences between households whose members lose money playing the lottery and/or engaging in pari-mutuel betting and those whose members do not lose money participating in such activities. The second assesses demographic differences among households whose members lose money playing the lottery and/or engaging in pari-mutuel betting. It was found that respondents living in money-losing households are slightly older, better off financially, more likely to be married or divorced, more likely to live in a state with at least one legal casino and more likely to live in the Northeast than respondents living in non-money-losing households. Among those living in money-losing households, the least wealthy and African American respondents are more likely to lose a higher proportion of their respective incomes purchasing lottery tickets and engaging in pari-mutuel betting than wealthier respondents and whites.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Blakey, G. R. (1979). State conducted lotteries: History, problems, and promises. The Journal of Social Issues, 35, 62–86.

    Article  Google Scholar 

  • Browne, B. A., & Brown, D. J. (2001). Predictors of lottery gambling among American college students. The Journal of Social Psychology, 134, 339–347.

    Google Scholar 

  • Burns, A. C., Gillett, P. L., Rubinstein, M., & Gentry, J. W. (1990). An exploratory study of lottery playing, gambling addiction, and links to compulsive consumption. Advances in Consumer Research. Association for Consumer Research (U. S.), 17, 298–305.

  • Freund, E. A., & Morris, I. L. (2005). The lottery and income inequality in the States. Social Science Quarterly, 86, 996–1012. doi:10.1111/j.0038-4941.2005.00333.x.

    Article  Google Scholar 

  • Gribbin, D. W., & Bean, J. J. (2006). Adoption of state lotteries in the United States, with a closer look at Illinois. The Independent Review, X, 351–364.

    Google Scholar 

  • Hansen, A. (2004). Lotteries and state fiscal policy. Tax Foundation Background Paper, 46, 1–36.

    Google Scholar 

  • Kaplan, H. R. (1984). The effects of state lotteries on the pari-mutuel industry. Journal of Gambling Studies, 6, 331–344. doi:10.1007/BF01014588.

    Article  Google Scholar 

  • Marler, L. G., & Berney, R. E. (1973). Demographic information on parimutuel betters with implications for tax incidence. The Annals of Regional Science, 7, 88–99. doi:10.1007/BF01285533.

    Article  Google Scholar 

  • McConkey, C. W., & Warren, W. E. (1987). Psychographic and demographic profiles of state lottery ticket purchasers. The Journal of Consumer Affairs, 21, 314–327.

    Article  Google Scholar 

  • McGowan, R. (1994). State lotteries and legalized gambling: Painless revenue or painful mirage?. Westport, CT: Praeger.

    Google Scholar 

  • Meinert, D. B., Lumpkin, J. R., & Reich, R. V. (1989). Public opinions toward state lotteries: A comparison of non-player and player views. Journal of Social Behavior and Personality, 4, 481–490.

    Google Scholar 

  • Mikesell, J. L. (1990). Lotteries in the state fiscal system. Journal of Gambling Studies, 6, 313–330. doi:10.1007/BF01014587.

    Article  Google Scholar 

  • Mobilia, P. (1992). A little bit more evidence of lottery regressivity: The Kansas state lottery. Journal of Gambling Studies, 8, 361–369. doi:10.1007/BF01024123.

    Article  Google Scholar 

  • Sauer, R. D. (1998). The economics of wagering markets. Journal of Economic Literature, XXXVI, 2021–2064.

    Google Scholar 

  • Terrell, D. (1994). A test of the gambler’s fallacy: Evidence from pari-mutuel games. Journal of Risk and Uncertainty, 8, 309–317. doi:10.1007/BF01064047.

    Article  Google Scholar 

  • Thalheimer, R., & Ali, M. M. (1992). Demand for parimutuel horse race wagering with special reference to telephone betting. Applied Economics, 24, 137–142. doi:10.1080/00036849200000112.

    Article  Google Scholar 

  • Thompson, W. (2001). Gambling in America: An encyclopedia of history, issues and society. Santa Barbara, CA: ABC-CLIO.

    Google Scholar 

  • United States Bureau of the Census. (2005). Income and apportionment of state-administered lottery funds: 2004. http://ftp2.census.gov/govs/state/04lottery.pdf. Retrieved 20 May, 2008.

  • United States Bureau of the Census. (2006). Income and apportionment of state-administered lottery funds: 2005. http://ftp2.census.gov/govs/state/05lottery.pdf. Retrieved 20 May, 2008.

  • United States Bureau of the Census. (2007). Income and apportionment of state-administered lottery funds: 2006. http://ftp2.census.gov/govs/state/06lottery.pdf. Retrieved 20 May, 2008.

  • Welte, J. W., Barnes, G. M., Wieczorek, W. F., Tidwell, M.-C., & Parker, J. (2002). Gambling participation in the U.S.—results from a national survey. Journal of Gambling Studies, 18, 313–337. doi:10.1023/A:1021019915591.

    Article  PubMed  Google Scholar 

  • Wisman, J. D. (2006). State lotteries: Using state power to fleece the poor. Journal of Economic Issues, 4, 955–966.

    Google Scholar 

  • Young, R. D. (2004). State lotteries: History, practices, issues and the South Carolina educational lottery. Columbia, SC: University of South Carolina College of Liberal Arts’ Institute for Public Research and Policy Research.

    Google Scholar 

Download references

Acknowledgments

This research was funded by Bloomsburg University’s Department of Sociology, Social Work and Criminal Justice. The authors wish to thank their department for its financial assistance. They would also like to thank Brian Kincel, a research assistant for this project, for all of his efforts.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to K. Brandon Lang.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Lang, K.B., Omori, M. Can Demographic Variables Predict Lottery and Pari-mutuel Losses? An Empirical Investigation. J Gambl Stud 25, 171–183 (2009). https://doi.org/10.1007/s10899-009-9122-3

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10899-009-9122-3

Keywords

Navigation