Lottery is a popular pastime with huge jackpots, promising instant riches. But the odds of winning are much lower than advertised, and even winning a large prize can be devastating for those who do. Americans spend $80 Billion a year on lottery tickets and, despite the mythology, most of them don’t get rich.
Lotteries have been around for centuries, with the Old Testament instructing Moses to draw lots for land and Roman emperors giving away property and slaves by lottery. But state-sponsored lotteries have only been introduced in the modern era—New Hampshire launched the first one in 1964, and 37 states now have one today. In virtually every case, the arguments for and against their adoption follow remarkably similar patterns.
States rely on two key messages to promote and sustain their lotteries: They dangle the promise of riches to entice people to play, while claiming that lottery proceeds help fund essential services for society. They also use the argument that lotteries provide “painless” revenue, a claim that appeals to voters concerned about paying higher taxes and cutting state services.
Once a lottery is established, it develops broad and specific constituencies that include convenience store owners (who sell the tickets); suppliers of lottery equipment and services (heavy contributions to state political campaigns are routinely reported); teachers (in those states in which lotteries contribute to education); and state legislators, who quickly become accustomed to additional tax revenues. Nonetheless, studies have shown that the objective fiscal condition of state governments does not appear to play a role in whether or when a lottery wins public approval.