The social value of gambling: surplus estimates by gambling types for France

Maxence Miéra (), Sophie Massin and Vincent Eroukmanoff ()
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Maxence Miéra: Univ. Artois, CNRS, IESEG School of Management, Univ. Lille, UMR 9221, Lille Economie Management (LEM)
Vincent Eroukmanoff: Observatoire français des drogues et des tendances addictives

The European Journal of Health Economics, 2023, vol. 24, issue 9, No 9, 1543 pages

Abstract: Abstract We estimate the social surplus of gambling in France by adding three components: consumer surplus, producer surplus and taxation revenue. To estimate consumer surplus, we use the rational benchmark approach, which attributes a loss of welfare (i.e. a negative surplus) to problem gamblers depending on their level of excess spending compared with recreational gamblers. Using data for the year 2019 and considering only legal gambling, we find that the consumer surplus is negative for the gambling activity as a whole. When we add the producer surplus and the taxation revenue to the consumer surplus, we find that the social surplus is more likely to be negative, ranging from − 45 billion euros in the pessimistic scenario to + 6 billion euros in the optimistic scenario. There are, however, important differences between gambling types. The social surplus is negative in all scenarios for poker and sports betting. Conversely, it is positive in all scenarios for draw lotteries and scratch cards.

Keywords: Gambling; Consumer surplus; Rational benchmark; Producer surplus; Taxation revenue; Social surplus (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10198-022-01560-9

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