The relationship between betting and lottery play

Forrest, DK; Gulley, OD; Simmons, R

Abstract

We apply a novel daily time series data set of daily turnover from one of Britain’s
leading bookmakers to analyze potential substitution between lottery play and
bookmaker betting. We find some evidence that bettors do substitute away from horse
race, soccer and numbers betting when the effective price of lottery tickets is unusually
low, that is, when there is a rollover or other special draw. This substitution has
a highly specific pattern of timing that varies by sector. Our results further suggest
that bettors rationally engage in forward-looking substitution within their betting
portfolios.

Citation

Forrest, D., Gulley, O., & Simmons, R. (2010). The relationship between betting and lottery play. Economic Inquiry, 48(1), 26-38. https://doi.org/10.1111/j.1465-7295.2008.00123.x

• Journal Article Type: Article
• Publication Date: Jan 1, 2010
• Deposit Date: Dec 12, 2011
• Journal: Economic Inquiry
• Print ISSN: 0095-2583
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 48
• Issue: 1
• Pages: 26-38
• DOI: https://doi.org/10.1111/j.1465-7295.2008.00123.x
• Publisher URL: http://dx.doi.org/10.1111/j.1465-7295.2008.00123.x