Socioeconomic and demographic determinants of household lotto demand: An integration of entertainment and desperation hypotheses

• Main Authors: Bernardo, Ma. Berniefel F., Cariaga, Brian Carlo M., Garcia, Jasmin R., Ko, Angelica Janel D.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Lotto; Lotteries > Philippines; Gambling > Philippines; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14368
• Institution: De La Salle University

The consumption of lottery goods has grown considerably in the Philippines over the years. Entertainment value is one explanation for lotto demand for the poor. Lotto can be a substitute for the more expensive entertainment goods. Alternatively, others may see lotteries as a convenient or otherwise a rare opportunity for drastically improving their standards of living. Bad times and financial shocks may cause desperation and the desperate may turn into lotteries to escape difficulties. This study tests this two competing hypotheses. Household lotto ticket sales across Luzon provinces over 2 periods of time are examined. It is found that poverty incidence and recreation expenses have a significant relationship to lotto sales. Socioeconomic and demographic factors such as income, age, gender, educational attainment, and household structures are proven to be significant determinants of lotto demand.