Does Vice Make Nice?

The Viability And Virtuousness Of Charity Lotteries*

JOHN PELOZA

DEREK N. HASSAY

Charities are under increasing pressure to find alternative sources of funding as governments reduce their levels of support. Although charitable gaming has long been considered a viable source of revenue for charities, opponents of gaming raise concerns over potential regressive taxation, and potential for negative behavioral consequences. The current paper proposes that a unique form of charity gaming–the charity super lottery (CSL)–offers significant benefits to charitable organizations. Interviews with previous ticket purchasers of Canadian CSLs confirm not only the viability of the CSL, but also what appears to be its virtuousness. Specifically, consumers of charitable lottery tickets appear: 1) more likely to perceive purchases as a donation than gambling, 2) less likely to be involved in other forms of gambling, and 3) perceive such lotteries as complementary to current donations. Implications for future development of CSLs in other markets, the U.S. in particular, are discussed.

*Forthcoming in the Journal of Nonprofit & Public Sector Marketing.