LONGITUDINAL EVIDENCE OF THE CHANGING SOCIOECONOMIC PROFILE OF A STATE LOTTERY MARKET

This longitudinal study of Indiana lottery expenditures tracks that ma rker from a time when all play was in games offered by other states un til the state offered a full portfolio of games. Both the socio-econom ic characteristics of players and the nature of their play have change d. Participation doubled when the Indiana games began, and it continue s to increase, albeit more slowly. Lottery play is regressive, and has become increasingly regressive over time. An increasing proportion of lottery revenues comes from low-income players and heavy betters, alt hough small bets are still the norm. While college graduates play the lottery less than do other individuals, the initial large gap in play rates for these two groups is diminishing as college graduates increas e their participation in the lottery. Similarly, women and individuals between the ages of 44 and 65 are continuing to increase their partic ipation in lotteries. Patterns associated with increased regressivity, with increased play among low-income players, and with higher relianc e on heavy betters, suggest a need for special policy vigilance as the games mature.