The market for EuroMillions

Jackpot sharing and implicit transfer of funds among countries

Bibliographic Data

ID12989187
AuthorsÁlvaro Muñiz (0000-0003-4148-0816, Universidad de Oviedo, corresponding author), Leví Pérez (0000-0001-6632-6626, Universidad de Oviedo)
Year2023
Volume40
Issue3
Pages817-833
Publication date2023-09-08
Open AccessYes
TypeARTICLE
VenueEconomia Politica (JOURNAL)
Journal identifiersISSN: 1973-820X • E-ISSN: 1120-2890
PublisherSpringer Science+Business Media (PUBLISHER • DE)
DOI10.1007/s40888-023-00316-9
OpenAlexW4386545227
LanguageEN
References cited23

Multi-country (state) lottery markets have emerged worldwide as an attempt to revert the decline in lottery sales. These markets allow operators to offer appealing large prizes by combining the markets of separate lottery jurisdictions. An analysis of EuroMillions’ jackpot sharing among countries of different market size shows that some countries tend to claim higher jackpots and achieve higher payout rates, while others seem to be systematically disadvantaged. This paper elaborates on whether this unequal jackpot distribution is caused by different demand behavior and market share trends in the market for EuroMillions. Evidence shows that such distribution of the jackpot is explained by differences in jackpot elasticity of the demand among countries, which causes, at the same time, variations in the market share and draw winning odds per country. As a result, some countries may then benefit from the funds that have been contributed to the prize pool by the rest, raising some implicit funding issues (net payout balance) and questioning the optimality of jackpot sharing

Disadvantaged · Economic growth · Economics · Logistic regression · Lottery · Microeconomics · Monetary economics · Odds · Price elasticity of demand · Economic theories and models · Gambling Behavior and Treatments · Sports Analytics and Performance

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Open DOIOpen Access