Are Consumers More Willing to Invest in Luck During Recessions

We use monthly data on gross expenditure on luck and skill games in Italy to investigate whether people react to recessions investing in activities based on fortune or ability. Luck game expenditure is volatile and positively correlated with unemployment in economic downturns. Naive consumers tend to consider luck games as a potential source of additional income during recessions. Skill game expenditure is persistent over time and uncorrelated with the unemployment rate, suggesting a more balanced attitude of skill consumers. This study provides evidence on the prevailing behavior and reaction of expert or naive consumers when facing economic downturns.