Lottery is the most popular form of gambling in America. It is also a massive and growing source of state revenue. State officials promote the lottery as a way to raise money for the common good without raising taxes, arguing that it is an efficient and painless method of raising public funds. But the truth is that it’s not only a costly form of taxation; it also creates new generations of gamblers.
The casting of lots to decide fates or to finance private and public ventures has a long record in human history, including several instances in the Bible. In colonial-era America, lotteries were a significant funding mechanism for roads, wharves, schools, colleges and churches. George Washington even sponsored a lottery in 1768 to finance the construction of a road across the Blue Ridge Mountains.
But while lotteries are often promoted as a harmless, fun way to pass the time, many people have become addicted to the game. Studies show that the share of Americans who play the lottery has increased over the years and is disproportionately high among those with low incomes. Lottery officials make two messages primarily when promoting the games: they tell people that playing the lottery is fun and that scratch-off tickets are especially exciting. They also imply that states need the revenue and are therefore compelled to offer lotteries.
Despite this, state government’s actual fiscal situation appears to have little effect on the decision to adopt a lottery. As a result, a lottery’s popularity is largely determined by state politicians’ need to win popular approval for the program and their desire to avoid taxes or other funding sources.