The impact of the daily lottery on the numbers game: Does legalization make a difference?

There has been a profusion of state run legal lotteries over the last two decades. One justification for them has been their supposed diversion of funds from illegal games known as numbers, policy and bolita. Records obtained in a police raid in south Florida provided an opportunity to analyze the impact of Florida' legal lottery on its illegal counterpart. The records ranged over a 13 week period encompassing five weeks prior to the inception of Florida's legal daily numbers and lotto games and seven weeks afterward. While there was a 17 percent decline in monies wagered on the illegal games during the first week of the legal games, illegal wagers quickly rebounded to prelegalization levels.An earlier version of the paper was presented at the annual meeting of the Academy of Criminal Justice Sciences, Washington, D.C., March 1989. The authors wish to express their deep appreciation to the Metro-Dade Police Department, Miami, Florida, and particularly to Max Schuman and Sgt. James Boyd for their assistance in this research.