On the basis of a telephone survey conducted on a random sample of the German residential population, we examine the distribution effects state lotteries have on Germany's social structure. Lotteries are highly taxed economic transactions, whose proceeds make up a considerable share of public fiscal revenues. Our analysis shows that lotteries are a form of regressive taxation. Using key demographic indicators, such as age, citizenship, and levels of income and education, we demonstrate the effects of fiscal redistribution.

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