The Relationship Between State Lotteries and Government Assistance Payments

This paper examines United States lottery revenues and finds an increase in lottery activity during weeks in which transfer payments (i.e. Aid to Families with Dependent Children, Social Security, disability, etc.) are distributed. Revenues from state lotteries are also shown to increase during the week transfer payments are distributed. The timing of the increase in lottery purchases suggests a portion of the transfer payments is used to purchase lottery tickets.

Running the Numbers on Lotteries and the Poor – An Empirical Analysis of Transfer Payment Distribution and Subsequent Lottery Sales

LesThe Relationship Between State Lotteries and Government Assistance Payments