The Determinants of Wagering Behavior

Ramon P. DeGennaro

University of Tennessee, Knoxville - Department of Finance

Managerial and Decision Economics, October 1989

The mutuel handle, or the total volume of wagering at a racetrack, has important implications for both racetrack and state revenues. This paper studies the factors that determine the dollar volume of wagering. One factor we study is of particular interest because it is both large and new to the literature: the sire stakes. The sire stakes is a major form of government subsidy. We conclude that this subsidy has little or no economic impact on the volume of wagers. Unless the state recovers nearly all of the subsidy in other ways, the sire stakes amounts to a direct transfer from taxpayers to the horse breeding industry. We also develop helpful information for managers and owners of racetracks.

Note: This is a description of the paper and not the actual abstract.

Keywords: Wagering, Sire Stakes, Racing, Mutuel Handle, Gambling, Subsidy

JEL Classification: G1, H2, H25, H71

Accepted Paper Series

Not Available For Download

Date posted: June 30, 2003  

Suggested Citation

DeGennaro, Ramon P., The Determinants of Wagering Behavior. Managerial and Decision Economics, October 1989. Available at SSRN: http://ssrn.com/abstract=411281

Contact Information

Ramon P. DeGennaro (Contact Author)
University of Tennessee, Knoxville - Department of Finance ( email )
423 Stokely Management Center
Knoxville, TN 37996
United States
865-974-1726 (Phone)
865-974-1716 (Fax)
Feedback to SSRN

Paper statistics
Abstract Views: 527

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo7 in 0.266 seconds