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Many states have organized daily lotteries as a means to supplement revenue. Although they have proven to be very popular and profitable, the additional aim of driving illegal numbers games out of business has not been fulfilled because of the relatively low payoffs of the legal games. A proposal is made whereby the payoffs to winners could be increased without the state reducing its keep. Both variable-payoff and fixed-payoff lotteries are examined.
The American Statistician © 1983 American Statistical Association