A closer look at the tax incidence of instant lottery games: an analysis by price point

Thomas Garrett

No 2011-010, Working Papers from Federal Reserve Bank of St. Louis

Abstract: The tax incidence of different price-point instant lottery games is examined. Theoretical reasons exist for expecting higher-priced instant lottery games to be less regressive than lower-priced instant games. Using game-level data from a sample of states, the empirical results show that higher-priced instant games are significantly less regressive than lower-priced games. For some games, regressivity is rejected in favor of proportionality. In addition, the tax incidence of individual instant games is quite different than that for all instant games combined. This suggests that large differences in individual instant-game tax incidence are masked if aggregated sales data are used.

Keywords: Gambling industry; Taxation (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-pbe
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