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Lotto Sales Stagnation: Product Maturity or Small Jackpots?
Author(s) -
DeBOER LARRY
Publication year - 1990
Publication title -
growth and change
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.657
H-Index - 55
eISSN - 1468-2257
pISSN - 0017-4815
DOI - 10.1111/j.1468-2257.1990.tb00511.x
Subject(s) - slowdown , maturity (psychological) , odds , product (mathematics) , economics , state (computer science) , retail sales , business , marketing , logistic regression , economic growth , political science , statistics , mathematics , geometry , algorithm , law
New York State lotto data are examined to determine whether the sales slowdown experienced by many state lotteries between 1985 and 1987 was due to a decline in interest by bettors or to a scarcity of large jackpots. Regression analysis shows that lotto sales accelerate as jackpots grow. Rising bettor participation causes fewer rollovers and smaller jackpots; this was the primary cause of the sales slowdown in New York. Increasing the odds against winning generates larger prizes and sales growth.