Recent U.S. gambling legalization: A case study of lotteries

Abstract

The decision to legalize gambling in the United States is made at the state rather than the federal level. Most forms of gambling were illegal in most states until a spate of legalizations occurred after 1964. A brief history of gambling legalization is presented. The largest number of recent legalizations has been state lotteries. Models were built to analyze which states were early adopters of lotteries and why. Early adopters (before 1980) were found almost entirely in the northeast and midwest, and nonadopters in the south and west. The conclusion using single variable models was that aging infrastructure was more closely associated with early adoption than other independent variables. In multiple variable models early adoption states were most accurately predicted by two characteristics: contiguity to states with legal lotteries and a low proportion Protestant church membership. Once these two variables are in the estimating equation additional variables—a senescent physical infrastructure, a “gambling culture,” fiscal exigency, metropolitan status, and a history of legislative innovation—are not useful predictors.