Transfer payment distribution and increases in gambling activity

Abstract

Attendance and wagering volume is examined at a greyhound racing track to determine if the distribution of transfer checks resulted in significant increases in these variables. Specifically, the impact of United States Social Security and federal assistance checks, which were released on the third of the month during the time frame studied, are investigated. Significant increases on check day were found for both attendance at the track and for betting volume in dollars. Lump-sum transfers from the government appear to lead to increases in gambling activity for liquidity-constrained consumers.