Syndicated play in lottery games

Abstract

Anecdotal evidence indicates that many people pool funds to purchase lottery tickets. We investigate the characteristics of such syndicated lottery play in Spain. The results indicate that the method of play, and the characteristics of syndicate members, exhibits significant heterogeneity across different lottery games. Employed individuals are more likely to participate in lottery syndicates than unemployed individuals, and females are more likely to play lottery games syndicated than males. The evidence supports both economic and sociological motives for syndicated play; informational problems appear to be an important barrier to the formation of lottery syndicates.