Public Policy and the Lottery

Lottery is a form of gambling in which the prize money is determined by drawing lots. It is one of the oldest forms of gaming known to humankind, and its use for a public purpose has a long history. In ancient Rome, for instance, lotteries were used to give away land and slaves, and the casting of lots was the basis for a number of legal decisions.

Modern state lotteries began in 1964 with New Hampshire’s adoption of a game, and since then most states have followed suit. They typically legislate a state monopoly, establish an independent lottery agency or public corporation to run it, and start out with modest offerings. As the demand for additional revenues grows, they systematically expand both their operations and their game portfolios.

While there is an inextricable human impulse to gamble, there’s also the reality that most people can’t afford to do so on a large scale. Lottery prizes are disproportionately high relative to the incomes of those who play them, and studies have shown that playing for these huge jackpots tends to decline with education and household incomes.

Moreover, lotteries develop extensive specific constituencies of convenience store operators (whose revenues are usually a percentage of total sales); lottery suppliers (who make heavy contributions to political campaigns); teachers (in those states that earmark their winnings for education); and state legislators (who quickly become accustomed to the additional revenue). This makes it difficult for them to adopt a broad policy vision, and they often find themselves at cross-purposes with the larger public interest.

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