Power Imbalances, Market Concentration, and High Jackpots: The Case of EuroMillions

Abstract

While the EuroMillions game has been in operation since 2004, there has been limited analysis of its demand and no research on potential power imbalances within the organization and their dependence on jackpot size. This study utilizes EuroMillions sales data at the country level to examine the distribution of market power within the organization and its historical trends. Market concentration is evaluated using the Herfindahl Hirschman index (HHI), and the relationship between the HHI and jackpot size is assessed using sales data at the draw level for all game operators. Findings indicate that power imbalances exist within the EuroMillions organization, partly due to the impact of the jackpot size, which appears to stimulate demand for EuroMillions tickets more in certain countries than in others.