Gambling as a Safety Net to Recession through Progressive Taxation

Abstract

In this dissertation, the main aim was to establish if gambling could provide a safety net to recession through progressive taxation. The elements of the study were established to be financial crisis, behaviourism, gambling industry and economic stimulus where thorough literature review was done on them, and conceptual framework formed with testable hypotheses. The research employed pragmatism paradigm which combines both interpretivism paradigm and positivist paradigm. To reach a conclusion and overall understanding of the mentioned concepts, both quantitative and qualitative study were conducted. The quantitative study employed linear regression equations where a relationship was established between lottery consumption and recession indicators which were unemployment figures and Consumer Price Index (CPI). From this, it was found that men in employment gamble more than women in employment and that unemployed figures of females have a high impact on lottery sales as compared to unemployed figures of males. There was a strong positive correlation between lottery sales and Consumer Price Index (CPI) as compared to unemployment figures. These were based on statistical analysis hence the mini poll survey conducted to gather qualitative opinion. If asked if they would still gamble if the lottery winnings were taxed, many weren’t sure if they would closely follow by others who said they would continue in lottery participation. Over 73% preferred that the lottery winnings be taxed than increase in other taxes for example income tax. Their ethical opinion on gambling was also collected and their view on current government tax regime. In conclusion, lottery consumption in Ireland seems to be recession proof or to increase when the factors indicating recession increase. The findings from the mini poll survey also indicate that introduction of taxation on lottery winnings is much viable and may be welcomed by the population more than it may face resistance to it meaning the government can benefit from this research but detailed qualitative study needs to be further done with tax experts and legislators.