Religion, ethnicity and risk-taking: Evidence from a new lottery- Texas

Abstract

A debate over Oklahoma's possible adoption of a lottery was a highlight of the 2002 gubernatorial election. In 1992, Texas joined the many states already conducting lotteries. While dissimilar in some ways, the populations of Oklahoma and Texas are alike in many ways. Therefore, policy makers considering an Oklahoma lottery can gain considerable insight from examining Texas's lottery. Texas is a state characterized by divisions between Whites and Hispanics and divisions between Baptists and Catholics. Based on academic research, Baptists were expected to shun lottery participation, and Catholics were expected to be eager lottery participants. This article, analyzing county data from the introductory period of the Texas Lottery, finds that reality is more complicated than anticipated. As expected, Baptists do not participate in the lottery, but Catholics are not homogenous. Concentrations of White Catholics indicate high levels of lottery participation, as expected. However, concentrations of Hispanic Catholics indicate lower levels of lottery participation. In Texas's new lottery, participation is a White non-Baptist experience. As expected, lower incomes and lower educations signal higher levels of lottery participation. Lottery play fell with middle-income concentrations, only unexpectedly to rise again with concentrations of people with higher incomes. At the highest incomes, lottery play again declined.