SETTING THE ODDS OF WINNING THE JACKPOT: ON THE ECONOMICS OF (RE) DESIGNING LOTTERY GAMES.

In many jurisdictions, domestic lotto games have experienced a decline in sales revenue due to the introduction of new products and the absence of appealing jackpots. To reverse this trend, operators worldwide have conducted major reforms to the design of games. In this paper, we focus on Spain's la...

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Publicado en:Contemporary Economic Policy Vol. 39; no. 1; pp. 168 - 178
Autores principales: Díaz, Alejandro, Pérez, Levi
Formato: Artículo
Publicado: Wiley-Blackwell Jan2021
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        au:
          Díaz, Alejandro
          Pérez, Levi
        affil:
          Department of Economics, University of Oviedo, 33006, Oviedo, Spain
          Department of Economics, University of Oviedo, Facultad de Comercio, Turismo y Ciencias Sociales Jovellanos, 33203, Gijón, Spain
      su:
        Games
        Lotteries
        New product development
      sug:
        subj:
          Games
          Hobby, Toy, and Game Stores
          Doll, Toy, and Game Manufacturing
          Toy and Hobby Goods and Supplies Merchant Wholesalers
          Lotteries
          Other Gambling Industries
          Marketing Consulting Services
          Lotteries
          New product development
      ab: In many jurisdictions, domestic lotto games have experienced a decline in sales revenue due to the introduction of new products and the absence of appealing jackpots. To reverse this trend, operators worldwide have conducted major reforms to the design of games. In this paper, we focus on Spain's largest domestic lottery game, which was redesigned in 2012 by significantly reduced the odds of winning the jackpot to produce more frequent and larger rollovers. Findings show overall negative results of such reform, as players seem to no longer react to large jackpots, and the declining trend in sales has even worsened.
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