Public Finance Review· 2026Q2
Sports Betting, Lotteries, and State Revenues in the Post-PASPA Era
- 1citations
- Q2SCImago
- 2026year
Short summary
Legalizing sports betting has no significant impact on state lottery sales, according to a study of 18 states.
AI-generated from the title and abstract; the full text is not read.
Key points
- Legalization of sports betting in 38 states and DC followed the repeal of PASPA.
- Previous evidence on gambling spending relationships was mixed.
- A difference-in-differences analysis used monthly lottery sales data from 18 states.
- No economically or statistically significant effect of sports betting on state lottery revenues was found.
AI-generated from the title and abstract; the full text is not read.
Abstract
State lotteries are an important source of state revenue in the 45 states that operate them. Following the repeal of the Professional and Amateur Sports Protection Act (PASPA), 38 states and Washington, DC legalized sports betting. Mixed evidence exists on the relationship between spending on different forms of gambling, raising concerns about potential fiscal impacts. Using monthly lottery sales data from 18 states and a staggered difference-in-differences design exploiting legalization, we find no economically or statistically significant effect of sports betting on state lottery revenues. These results are robust across specifications and sub-samples.
The authors' abstract, as published at the source. Public Finance Review, 2026 · DOI ↗
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Field: Economics and Econometrics
Economics and EconometricsEconomics, Econometrics and Finance