Document Type
Working Paper
Publication Date
2-2026
College/Unit
Chambers College of Business and Economics
Document Number
26-05
Department/Program/Center
Economics
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. Prior evidence is mixed on whether sports betting and lotteries are substitutes, complements, or unrelated goods, raising concerns about potential fiscal impacts. Using monthly lottery sales data from 18 states and a difference-in-differences design exploiting staggered 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.
Digital Commons Citation
Nedved, Joseph; Nason, David; Hoffer, Adam; Ferreira Neto, Amir B.; and Humphreys, Brad, "Sports Betting, Lotteries, and State Revenues in the Post-PASPA Era" (2026). Economics Faculty Working Papers Series. 264.
https://researchrepository.wvu.edu/econ_working-papers/264