The effect of legalizing sports betting on lottery sales

Abstract

The 2018 Supreme Court decision overturning the federal ban on sports betting has led states to legalize sports betting. Most states already permit other forms of gambling such as the lottery which is an important source of revenue for state governments. This study exploits the legalization of sports betting to analyze the effect on lottery sales. Evidence using a staggered difference-in-differences framework shows that legalizing sports betting is associated with a decrease in lottery sales.