Document Type

Working Paper

Date of This Version

5-1-2013

Keywords

lotto, lottery, public finance, gambling

Abstract

State lotteries currently operate in 43 states across the US. Recently, three states have privatized their lottery operations, handing over the management of their lotteries to private companies in hopes of generating greater revenues for the state governments. Questions arise regarding the economic rationale for this decision and an economic model is presented to determine whether one state, Illinois, has been successful at generating more state transfer revenues as a result of privatization in its first year of results. The issue of lottery privatization is also examined

Working Paper Number

1303

Included in

Economics Commons

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