| Summary: | A study of Indiana lottery expenditures was conducted to track the market from a time when all play was in games offered by other states until the state offered a full portfolio of games. Participation doubled when the Indiana games started, and it continues to rise, albeit at a slower pace. Lottery play is regressive and has become increasingly so with the progression of time. A growing proportion of lottery revenues comes from low-income players and heavy betters, but small bets are still the norm. Although college graduates play the lottery less than do other individuals, the initial large gap in play rates for these two groups is declining as college graduates increase their participation in the lottery. In addition, women and those between the ages of 44 and 65 are continuing to increase their participation in lotteries. Patterns related to increased regressivity, to increased play among low-income players, and to greater dependence on heavy bettors suggest a need for special policy vigilance as the games mature.
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