No. 47. THE ECONOMICS OF GAMBLING IN GREECE (in Greek)
Study Group. 2000. | ISBN: 960-341-031-4
This work presents in a comprehensive way the size, the organisation and the recent trends in the market of gambling licensed by the government (PRO-PO, LOTTO, PROTO and Governmental Lottery) in Greece. In particular, this study taking into account the relevant economic literature, addresses issues such as: the development of the new ‘industry’, the interrelationships between the products offered, the gamblers’ behaviour, the contribution to public revenue and the socio-economic impact of gambling.
The economic investigation of the gambling market was based on the analysis of statistical data related to sales, turnover, sales prices, gamblers’ profit, government’s profit and expenditure from organisations who manage the gambling. Furthermore, this study examines gamblers’ behaviour per county and region, using data from the Household Budget Survey related to consumer’s expenditure and other socioeconomic characteristics.
The empirical analysis is applied at the market of Governmental Lottery and PRO-PO for which statistical data exist for the period 1974-1994. The model which is estimated consists of demand and cost functions. The results obtained support the hypothesis that a substitution relation exists between PRO-PO and Governmental Lottery, while both games appear to be complementary with respect to Popular Lottery. Furthermore, the important relation between sales and expected profits is confirmed, while a positive relation is observed with disposable income, in contrast with most empirical findings in other countries.
The study concludes that gambling with its significant governmental revenues, when compared to the associated management cost, constitutes the most profitable public sector activity and a relatively smooth way of reducing the public deficit.