Gambling nations: a study of the structural and cyclical macro-level correlates of gambling expenditure

Abstract

ABSTRACT This article studies the structural and cyclical macro-level correlates of betting, gaming and lottery expenditure par adult using data on 78 countries over the period 2003–2019. The results are different for each type of game, with significant similarities between betting and lottery. The main correlate of gaming expenditure is the median age of the population, with an inverted U-shaped relationship. For betting and lottery, the main positive correlates are the GDP per capita, with an elasticity greater than unity, the share of urban population and the quality of legal institutions. Patience is negatively related to betting expenditure. Religion plays a role for betting (positive link with being a Protestant country) and lottery (negative link with being a Muslim country). Gaming expenditure tends to be procyclical (negative link with unemployment) and lottery expenditure countercyclical (negative link with growth). These results can be useful to operators and governments in understanding the differences in the size of the gambling sector between countries and over time and defining appropriate business strategies and public policies.