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Using data on U.S. states, this paper studies the factors driving lottery-related crimes, focusing on spillovers from other gambling and corruption. Although state-sponsored lotteries have become quite popular in the United States in recent years, formal research on their causes is rather limited. Results show corruption to increase lottery-related crimes, while higher lottery prize money and greater economic prosperity have the opposite effect. We find crowding out from electronic gaming machines. However, competition from Native American casinos or casino gambling crimes does not significantly impact lottery crimes.
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Rajeev K. Goel (2020) studied this question.
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