The Relationship Between a National and a Multistate Lotto Game

Authors

  • David Forrest Centre for the Study of Gambling University of Salford
  • Ian McHale Centre for the Study of Gambling University of Salford

DOI:

https://doi.org/10.5750/jgbe.v1i3.521

Abstract

The United Kingdom National Lottery is a member of a lottery block that offers a weekly lotto game, known as EuroMillions, for which tickets are now sold across nine countries. The paper examines whether the game has cannibalised sales in the pre-existing national lotto game and whether, with both products in place, players treat them as substitutes or complements. No evidence is found of cannibalisation and UK Saturday Lotto and EuroMillions are found to be complements rather than substitutes.                   

References

P J Cook and C T Clotfelter ‘The peculiar scale economies of lotto’ (1993) 40 American Economic Review 634-643.

D Forrest ‘Time series modelling of the demand for lotteries’ in L Vaughan Williams (ed.) The Economics of Betting, (London, Routledge, 2003), pp. 182-203.

D Forrest, O D Gulley and R Simmons ‘Elasticity of demand for UK National Lottery tickets’ (2000) 53 National Tax Journal 855-865.

D Forrest, O D Gulley and R Simmons ‘Substitution between games in the UK national lottery’ (2004) Applied Economics 645-651.

K R Grote and V A Matheson ‘Dueling jackpots: are competing lotto games complements or substitutes?’ (2006) 34 Atlantic Economic Journal 85-100.

D Gulley and F A Scott ‘The demand for wagering on state-operated lottery games’ (1993) 45 National Tax Journal 13-22.

Published

2013-01-02

Issue

Section

Articles