Estimating the extent of cross-border lottery shopping: evidence from South Carolina

摘要

The South Carolina Education Lottery (SCEL) began selling tickets in 2001. Early studies indicate significant cross-border shopping, especially in counties bordering North Carolina (NC), which created its own lottery in 2006. We examine the impact of the North Carolina Education Lottery (NCEL) on sales of lottery tickets in South Carolina (SC). We find that the introduction of the NCEL coincides with a significant drop in lottery sales in SC counties bordering NC. By creating its own lottery, NC successfully redirected the flow of lottery dollars to its own coffers.