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Voting for a Lottery

Author

Listed:
  • David Giacopassi

    (University of Memphis, Tennessee)

  • Mark W. Nichols
  • B. Grant Stitt

    (University of Nevada, Reno)

Abstract

State lotteries have been adopted by thirty-eight states, primarily as a means of funding “good causes†or closing budgetary gaps. While several studies have identified the regressive nature of lotteries and factors responsible for their expansion, less is known about the underlying voting patterns that have driven this expansion. This article examines county-level voting patterns from the 2002 Tennessee lottery referendum and county-level lottery expenditures to determine whether voting reflects a latent demand for lottery or is a deliberate attempt to shift the tax burden. The results indicate that the percentage voting for lottery approval and lottery expenditure is not correlated with income and negatively correlated with education. Voting patterns are therefore similar to lottery participation, suggesting that voting reflects a latent demand for lottery. Lottery expenditure patterns for border counties exhibit familiar cross-border shopping patterns. Casino gambling is a substitute for instant but not online games.

Suggested Citation

  • David Giacopassi & Mark W. Nichols & B. Grant Stitt, 2006. "Voting for a Lottery," Public Finance Review, , vol. 34(1), pages 80-100, January.
    • Handle: RePEc:sae:pubfin:v:34:y:2006:i:1:p:80-100
    DOI: 10.1177/1091142105282598
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    References listed on IDEAS

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    Cited by:

    1. Linda S. Ghent & Alan P. Grant, 2007. "Are Voting and Buying Behavior Consistent? Evidence from the South Carolina Education Lottery," Public Finance Review, , vol. 35(6), pages 669-688, November.
    2. Skidmore, Mark & Serkan Tosun, Mehmet, 2008. "Do New Lottery Games Stimulate Retail Activity? Evidence from West Virginia Counties," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 38(1), pages 1-11.
    3. Ghent, Linda S. & Grant, Alan P., 2010. "The Demand for Lottery Products and Their Distributional Consequences," National Tax Journal, National Tax Association;National Tax Journal, vol. 63(2), pages 253-268, June.
    4. Rose Baker & David Forrest & Levi Perez, 2016. "Modelling regional lottery sales: Methodological issues and a case study from Spain," Papers in Regional Science, Wiley Blackwell, vol. 95, pages 127-142, March.
    5. Peter Calcagno & Douglas Walker & John Jackson, 2010. "Determinants of the probability and timing of commercial casino legalization in the United States," Public Choice, Springer, vol. 142(1), pages 69-90, January.
    6. Horácio Faustino & Maria João Kaiseler & Rafael Marques, 2009. "Why Do People Buy Lottery Products?," Working Papers Department of Economics 2009/01, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    7. Douglas M. Walker & John D. Jackson, 2008. "Do U.S. Gambling Industries Cannibalize Each Other?," Public Finance Review, , vol. 36(3), pages 308-333, May.
    8. Maria João Kaizeler & Horácio C. Faustino, 2008. "Demand for Lottery Products: A Cross-Country Analysis," Working Papers Department of Economics 2008/33, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    9. Zuzanna Halicka & Michał Krawczyk, 2014. "Happy-go-lucky. Positive emotions boost demand for lotto," Working Papers 2014-09, Faculty of Economic Sciences, University of Warsaw.

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    Keywords

    voting; lottery; latent demand;
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