The Demand For Sports Lottery: Evidence from the City of Kumasi in Ghana

Abstract

Formalised sports lottery is fast becoming a craze in Ghana, especially amongst the male populace. There is however no documented research on the demand for this product as well as its effects on the population and economy of Ghana as a whole. This study sought to investigate the factors that influence the demand for sports lottery in Ghana. Based on the expected utility hypothesis, a model was constructed using a binary logistic regression to analyse the characteristics that influence the demand for sports lottery in Ghana. Four hundred respondents were employed in this study where it was realized that 92% out of the about 96% males engaged in sports lottery in Ghana were within the age bracket of 21-40 years. Furthermore, 53.6% of those engaged in sports lottery were reported to be unemployed. Price, gender, age, employment status, monthly income and whether a person has won a bet before were discovered to be significant factors of the demand for sports lottery in Ghana. The study also realized that online lotteries were such as MyBet and Supabet were the most preferred to the offline lottery offered by the National Lottery Authority. Therefore the NLA must redesign their product to meet the demand preferences of the patrons.

Does Sports Betting Affect Investment Behaviour? Evidence from Ghanaian Sports Betting Participants

“…Essentially, any form of uncertainty in any sports can be bet on. Aflakpui et al (2016) examined the demand for sports lottery in the city of Kumasi, a city in Ghana, using data from four hundred interviews. Their results indicated that 92% out of the 96% of adult males interviewed engaged in some form of sports lottery.…”

“…In Africa in general and Ghana in particular, the story is the same. Aflakpui & Oteng-Abayie (2016) established that SB has seen a significant rise in the African continent in the last two decades. Wangari (2018) also studied sports betting frequency among the Ghanaian youth, here specifically within the ages 17-35, and found that about half of them (48%) place a bet at least once a month (see Figure 1).…”

Does immiserizing growth exist? Evidence from world’s top trading nations

“…Logistic regression is exceptionally prevalent in various areas especially in the field of economics. It is an iterative estimation method, which is significantly valuable for equations that consist of nonlinear coefficients (Aflakpui and Oten, 2016). The logistic model is derived from the utility approach and specifically assessed by the maximum likelihood technique (Horowitz and Savin, 2001).…”

“…The logistic model is derived from the utility approach and specifically assessed by the maximum likelihood technique (Horowitz and Savin, 2001). Several scholars have applied this method in their research studies (Imon et al, 2012;Aflakpui and Oten, 2016;Christodoulou et al, 2019).…”

“…In logistic regression dependent variable is not just a binary outcome; instead, they are in a transformed structure called log-odds or logit, which is the natural logarithm of odds (Aflakpui and Oten, 2016). The rationale of using odds is in line with the pragmatism that immiserizing growth is conditional to probabilities [probability of occurring immiserizing growth P = (Y = 1) or vice versa], however, illustrating probabilities in linear form comprises two hurdles i) probabilities are not bounded between zero and 1 ii) residuals are not normally distributed.…”