Lotto was inaugurated in January 2002 and immediately became a popular activity in Taiwan. The purpose of this investigation is to examine the effective price elasticity of Big Lotto and the substitute effects between Lotto (6/42) and Big Lotto (6/49). The analytical results can provide suggestions to the Taipei Bank on ways to improve lottery sales. The empirical findings of investigation include: (1) no significant substitutive or complementary relationships exist between Big Lotto and Lotto in Taiwan (2) the effective price elasticity of Big Lotto is -0.145, Taipei Bank can increase the revenue gained from Big Lotto by increasing the effective price.

Lotto was inaugurated in January 2002, and immediately became a popular activity in Taiwan; as the big craze following its initial introduction has subsided, the growth of Lotto game sales has slowed. To maintain lottery sales' momentum, operators have conducted numerous jackpot promotions; this study examines the effectiveness of various jackpot promotional strategies. The analytical results can provide a valuable reference for operators and governmental authorities regarding ways of increasing lottery earnings. The empirical findings of this investigation include the following: (1) the effective price elasticity of Lotto is -0.382; Taipei Fubon Bank can increase the revenue gained from Lotto by increasing the effective price; (2) operators can significantly increase lottery sales by declaring the jackpot as an unconditional added fixed or variable bonus.

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