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Has the rise of legal sports betting reduced lottery revenues? Evidence from New York

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  • Robert Baumann

    (College of the Holy Cross)

Abstract

This paper examines the relationship between the legalization of mobile sports betting and state lottery ticket sales utilizing weekly sales data from the state of New York. This paper finds a statistically significant decline in lottery ticket sales compared with expectations after the introduction of mobile sports betting in the state on January 1, 2022. Every $100 in legal sports bets made results in a decline in lottery ticket sales of $3.13. Alternatively, weekly lottery ticket sales fell by $11.5 million per week following the introduction of mobile sports betting. This still results in an increase in total gambling revenue collected in New York, but in jurisdictions with lower sports betting tax rates, a similar finding would result in a net decline in total gambling revenues from the introduction of sports betting.

Suggested Citation

  • Robert Baumann, 2025. "Has the rise of legal sports betting reduced lottery revenues? Evidence from New York," Economics Bulletin, AccessEcon, vol. 45(3), pages 1341-1353.
    • Handle: RePEc:ebl:ecbull:eb-25-00044
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    File URL: http://www.accessecon.com/Pubs/EB/2025/Volume45/EB-25-V45-I3-P114.pdf
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    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • L8 - Industrial Organization - - Industry Studies: Services

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