A longitudinal analysis of income-based tax regressivity of state-sponsored lotteries

Government-sponsor-ed lotteries have been criticized for disproportionately generating revenues from lower-income consumers. Prior academic research o n this aspect of government-sponsored lotteries reveals a set of conflictin g findings: Many studies conclude that lotteries represent a form of regres sive revenue production, whereas others conclude thar lotteries represent p roportional or even progressive revenue generation,. Examination of the ove rall body of prior research suggests that lottery regressivity levels are n or constant over time. With this research, the authors provide a more focus ed exploration of this Issue by analyzing longitudinal sales data from six lottery states to determine patterns of change in lottery tar regressivity. The analyses provide preliminary evidence that lotteries become less regre ssive as they progress through their individual life cycles and as new mark eting efforts-such as anonymous methods of play-become more prevalent. The authors explore implications for further lottery-related policy research, w ith particular emphasis on likely contributions from a relatively unexplore d marketing perspective.