The lottery is one of the most popular forms of gambling in the world. Its popularity stems from the fact that it offers a chance to win a large sum of money for very little effort. In the United States, lotteries draw from a player base that is disproportionately lower-income, less educated, nonwhite, and male. While some people play the lottery as a way to increase their income, others do so because they simply like the thrill of winning. While there’s no doubt that a large percentage of people enjoy playing the lottery, it’s important to recognize the negative effects of the game and consider alternatives.
In the past, lotteries were used to raise money for a variety of public uses, including the paving of streets and construction of wharves. George Washington even sponsored a lottery to help finance a road across the Blue Ridge Mountains. In the early colonies, lotteries were also used to fund a number of educational institutions, from Harvard and Yale to colleges in New York and Virginia. However, the lottery has become increasingly a form of consumerist gratification, dangling the promise of instant riches in an era of inequality and limited social mobility. This is especially true with the mega-lotteries, such as Powerball and Mega Millions, which are aimed at wealthy middle-class consumers.
The most significant issue facing state lotteries is that, once established, they are often subject to continued evolution without any general overview or policy framework. This creates a series of problems, from the promotion of misleading odds to alleged regressive impacts on lower-income groups. It has also resulted in a dependence on lottery revenues, with pressures for increased profits often driving the introduction of new games.
A common argument is that state lotteries provide a needed public service by raising money for a specific public good, such as education. This appeal is particularly strong in times of economic stress, when state governments are facing the prospect of tax increases or cuts to public programs. However, studies have found that lottery revenues are not necessarily linked to state government’s actual financial condition, and a lottery does not protect a state from economic challenges.
Moreover, a lottery does not protect a state against the inevitable slowing of growth and eventual decline. Revenues often grow rapidly when a lottery is introduced, but they eventually level off or even decline, prompting lotteries to introduce new games in an attempt to maintain or increase their share of the market. This can have unintended consequences, such as promoting irresponsible spending habits. In the long run, this approach may prove to be a losing strategy for both state lotteries and their players. Khristopher J. Brooks is a reporter for CBS MoneyWatch. He formerly reported for Newsday and the Omaha World-Herald, covering the U.S. housing market, business of sports, and bankruptcy. He is a graduate of the University of Nebraska–Lincoln. Follow him on Twitter: @kbrookscbs.
