Ends and Means in State Lotteries: The
Importance of a Good Cause
Charles Clotfelter and Philip Cook
Duke University
October 25, 2007
Gambling and the American Moral Landscape
Boston College
Number of lotteries and per capita sales
Year
Number of
state lotteries
Per capita sales
(FY 2006 dollars)
1973
1987
1997
2006
7
23
38
43
$43
$157
$186
$184
$
Social cost
Revenue
Takeout rate
.10
t*
t**
Two possible payout structures
(op. costs = .10 per dollar)
Game 1
Game 2
Payout
(prizes)
0.50
0.60
Contribution
to government
0.40
0.30
New Mexico TV Ad
Primary Themes in 325 T.V. Lottery Ads
Primary theme
Informational
Direct sales appeal
How to play
Previous winners
Public benefits
Number of ads, by earmarking of lottery revenue
Earmarked General fund*
All
(%)
82
35
16
40
16
3
3
3
98
38
19
43
30.2
11.7
5.8
13.2
Thematic
Fun, excitement of playing 48
You could win
31
Wealth, elegance
6
Jackpot growing
13
21
2
0
6
69
33
6
19
21.2
10.2
1.8
5.8
Total
54
325
100.0
Were public benefits
mentioned?
271
53
3
56