Crowdfunding as Gambling: Evidence from Repeated Natural Experiments

Tolga Demir, Ali Mohammadi*, Kourosh Shafi

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


Lenders in Prosper, one of the largest lending markets in the U.S., reduce their activity when playing multistate Powerball or Mega Millions lottery jackpot becomes attractive. This finding suggests that the desire for sensation seeking is an underlying motivation for participating in peer-to-peer crowdfunding markets; the thrill of winning a large lottery jackpot fulfills some lenders' desire for novelty and sensation seeking, thus decreasing their lending activity. We discuss our findings' implications for lenders, borrowers, platform organizers, and policymakers.
Original languageEnglish
Article number101905
JournalJournal of Corporate Finance
Number of pages26
Publication statusPublished - Dec 2022

Bibliographical note

Published online: 26 February 2021.


  • Peer-to-peer lending
  • Crowdfunding
  • Lottery
  • Gambling
  • Fin-tech

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