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Impact of Legalized Gambling - The Socioeconomic Consequences of Lotteries and Off-Track Betting

NCJ Number
85845
Author(s)
D Weinstein; L Deitch
Date Published
1974
Length
220 pages
Annotation
State lotteries and off-track betting (OTB) enterprises are not likely to be significant sources of government revenue in relation to total revenues.
Abstract
Based on visits to 30 persons in 6 States, including administrators of State lotteries and OTB enterprises and an examination of official records, this study found that similar percentages of all income classes participate in State lotteries, and lower income persons do not appear to bet more money than those with higher income. OTB participants tend to be somewhat more concentrated in middle and upper income groups. Regressivity of both lotteries and OTB is offset by progressive taxation of winnings and by the progressive pattern of distribution of revenues among the beneficiaries. State lotteries and OTB are not likely to affect adversely the personal, familial, or work situations of the average bettor. State lotteries have had a limited impact on illegal gambling, while OTB has noticeably reduced the volume of illegal horse track betting. Revenue and antigambling objectives of legalization of gambling may conflict, and the conflict is likely to be more severe in the case of OTB than State lotteries. Other economic impacts, social consequences, and public policy issues are also discussed. Tables, figures, an index, and about 400 references are provided. A compilation of provisions of State lottery laws is appended.

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