marceloburlonLottery is a popular way for governments to raise money by offering chances to win prizes of varying amounts based on the number and type of tickets sold. They are often criticized for encouraging addictive forms of gambling and for having a disproportionately negative effect on lower-income groups, but have also been praised for raising large sums of money to address specific problems. Despite these criticisms, Lottery has been adopted in nearly all states.
The first known public lotteries were held in the Low Countries in the 15th century for a variety of purposes, including town fortifications and aid to the poor. In modern times, lottery games have largely followed the same pattern: The state establishes a monopoly for itself; creates a state agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a portion of profits); begins operations with a modest number of relatively simple games; and, due to constant pressure to generate additional revenues, progressively expands the lottery’s offerings by adding new games.
While the state-run lottery is often portrayed as a noble endeavor, there is little doubt that it is an enormously profitable business for those who manage it. State lotteries have broad public support, with 6 in 10 adults reporting playing at least once a year. In addition, they have extensive specific constituencies, including convenience store operators (who are the primary lottery vendors); suppliers (heavy contributions by suppliers to state political campaigns are commonly reported); teachers in those states that earmark lottery revenues for education; and, of course, state legislators.
In addition, the affluent are often drawn to Lottery games, especially those that offer high jackpots and the chance to win big money in a short period of time. However, this group is usually not the largest player base, and it has been reported that Lottery revenues are derived primarily from low-income people, minorities, and women.
Ultimately, Lottery’s success as a revenue-generating enterprise has been due to its ability to appeal to the broadest possible range of consumers. The public’s general desire to see its hard-earned tax dollars used wisely, coupled with the affluent’s tendency to seek out risky ventures, make Lottery an attractive funding source.
In fact, the popularity of Lottery has led many states to introduce similar games. But even as they expand their reach, state lotteries face a fundamental conflict between the state’s desire to maximize revenues and its responsibility to protect the public welfare. As a result, critics of Lottery continue to target specific aspects of its operations, arguing that the lottery promotes addictive gambling behaviors and is a regressive form of taxation on lower-income groups. They also point to a variety of other abuses. These are all valid concerns, but it is important to consider the overall context of Lottery before making an assessment. The following article examines these concerns in detail.
