Public Policy and the Lottery

A lottery is a form of gambling in which numbers are drawn and people with tickets that match these numbers win prizes. It was popular in colonial America and helped finance roads, libraries, colleges, canals, bridges, and the militia and other public ventures. Today the lottery is a major source of revenue in most states and it offers a variety of games such as instant-win scratch-offs, weekly draws, and game where you choose numbers. The winning numbers are usually displayed on a large screen and the prize money can be cash or an annuity paid over several years.

State lotteries rely on two messages to maintain their popularity and their profits: (1) the admonition that the lottery is a fun and unique way of spending money, and (2) the message that the proceeds will benefit the public. The latter carries particular appeal in times of financial stress and it can be used to justify raising taxes or cutting back on state programs that are viewed as less desirable.

The emergence of the modern state lottery has been a classic example of public policy evolving piecemeal and incrementally, with few states having a coherent “gambling policy” or even a lottery policy. As a result, public debates about the lottery tend to focus on specific aspects of its operations, including its impact on problem gamblers and its regressive effect on lower-income groups, rather than the broader issue of whether the state should have any role in promoting gambling at all.