The Demand for Unfair Gambles: Why Illegal Lotteries Persist

Abstract

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We show how cheating in illegal gambling can be sustained in equilibrium, even when gamblers are aware of it. Not only is cheating pro…t-maximizing for operators, but it can also be utility-maximizing if it provides gamblers the opportunity to engage in other related activities that generate non-monetary rewards, such as practicing superstitions. This, in turn, suggests why legalizing gambling might not fully capture the gains from the illegal market -operators and gamblers both prefer cheating, but this would be harder to hide in a legalized environment. Terms of use: Documents inWe illustrate the model, generate results, and verify them empirically, using the example of jueteng, an illegal numbers game in the Philippines.

The impact of gambling on rural communities worldwide: A narrative literature review.

“…The existence of illegal gambling in rural areas is well documented (Desierto, Nye, & Pamintuan, 2011; McElwee, Smith, & Somerville, 2014). Both crime and rising prostitution are reported in a number of countries connected to both legal and illegal gambling activity (Cheng, Smyth, & Sun, 2013; Richard, Blaszczynski, & Nower, 2014; Xiang, 2012).…”

“…Gambling has been shown to increase negative social issues in rural areas, including illegal activities and personal relationship problems (Chin & Finckenauer, 2011; Nichols et al, 2004). Rural areas are often the target of organized crime, which introduce illegal gambling events and combine it with other vices, such as prostitution (Desierto et al, 2011; McElwee et al, 2014). Rural gamblers themselves turn to crime to gamble or to pay off gambling debts (Cheng et al, 2013).…”

The Informal Norms of HIV Prevention: The Emergence and Erosion of the Condom Code

“…Informal norms may still coordinate behavior in more complex situations and when people are boundedly, or not perfectly, rational. 42 David Dequech defines bounded rationality as "…a type of rationality that people (or organizations) resort to when the environment in which they operate is too complex relative to their limited mental abilities." 43 Informal norms persist, change, or erode depending on how people value following its rules.…”