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Public Policy and the Lottery

The lottery is an increasingly popular means of raising public funds. It enables governments to raise money for anything, from paving streets to building colleges. Its advocates argue that lotteries are painless for taxpayers because the winners voluntarily spend their own money. In reality, the lottery is not an efficient way to fund government projects. Its abuses strengthen the arguments of those who oppose it and erode support for those who defend it.

The modern lottery evolved from a simple raffle, with the public buying tickets for a drawing at some future date. But innovations in the 1970s transformed it into a state-run business with more complex games, generating higher revenues. Lottery officials are always seeking ways to maintain and increase these revenues, introducing new games at a fast pace.

As a result, the industry is fragmented, and few states have a coherent “gambling policy.” The growth of a lottery is a classic example of public policy being made piecemeal, incrementally, with the general public welfare only intermittently, if at all, taken into consideration. State lotteries develop extensive and specific constituencies: convenience store owners, lottery suppliers (whose heavy contributions to state political campaigns are often reported); teachers in those states where lottery revenues are earmarked for education; and state legislators, who become accustomed to receiving substantial campaign donations from the industry.

The marketing of the lottery is designed to appeal to these specific groups and to foster addiction. It uses images of people having fun playing the game, promoting the idea that it is a harmless pastime. This message obscures the regressive nature of lottery play, and it deceives the public into thinking that winning is a matter of luck and skill rather than a process of acquiring wealth.