The lottery is a form of gambling where people pay small amounts for the chance to win large prizes. Some governments outlaw it, while others endorse it to the extent of creating a state-run lottery. Regardless of how governments organize their lotteries, they are all faced with the same fundamental questions: how to attract players; how to distribute the money; and what kind of benefits to the public can be achieved.
As a result, the evolution of state lotteries provides a classic example of how public policy is often made piecemeal and incrementally. The establishment of a lottery typically involves creating an independent monopoly, legitimizing the monopoly with an executive order or legislative act, and then launching with a modest number of relatively simple games. Under constant pressure to increase revenues, officials then progressively add new games and more sophisticated marketing campaigns. The result is that a lottery eventually becomes a complex and largely self-regulating industry with little in the way of overall public welfare goals or guidelines.
Despite the long odds of winning, many people buy tickets in the belief that they are doing a good thing for society by contributing to state coffers. This reflects a fundamental human impulse to gamble. It is not always a bad thing, but it is important to keep in mind that the millions of dollars spent by lottery players represents foregone savings that could have gone towards things such as retirement accounts or college tuition.
Lotteries are also a good way for states to raise revenue in an era of declining revenues and growing deficits. It is, however, important to remember that the funds lottery operators raise aren’t free; they are a form of taxation. State governments should take care not to become too dependent on these kinds of “painless” revenues.
Lotteries may be a popular source of revenue, but they should be subjected to serious scrutiny before being implemented in a particular state. In particular, lotteries should not be promoted as a “tax break” for the working class or for the benefit of children and the poor. This is a classic case of government running at cross-purposes with the general public. In an era of anti-tax fervor, it is critical to examine the true nature of lottery revenues and to ensure that they are being used in accordance with the public interest. Only then can the enduring popularity of the lottery be fully justified. -Adam B. Goldstein, professor of history and law at the University of Pennsylvania. This essay is based on his recent book, The Lottery: A History of the People’s Game (Oxford University Press). The book is available for purchase at http://www.oup.com/uk/catalogues/book/978-0190557063. Abridged versions of essays from the book are appearing in many newspapers around the world, including The New York Times. The book is also available in ebook and audiobook formats from OUP. The publisher has provided a copy of the book to Slate for review purposes.