Public Welfare and the Lottery

The lottery is a form of gambling where numbers are drawn at random for a prize. While some governments outlaw lotteries, others endorse them and organize state-based lottery games. Regardless of the specifics, lottery officials often find themselves at cross-purposes with the general public welfare.

In a sense, this is an unavoidable consequence of the way lottery games are organized. Lotteries are run like businesses, whose advertising focuses on persuading target audiences to spend their money. This has the effect of encouraging gambling among the poor and vulnerable, and it raises questions about whether promoting this kind of gambling is a proper function for government.

Historically, states adopted lotteries to promote a specific cause or to raise money. The early games helped finance the construction of church buildings, and later lotteries helped fund universities. Lottery revenues were a popular alternative to raising taxes, which was often politically risky.

Lottery games grew in popularity after the 1960s, amid increasing economic inequality and a new materialism that seemed to suggest that anyone could become rich with sufficient effort or luck. The growth of the lottery industry may also have been fueled by a growing anti-tax movement that led legislators to seek out alternatives to raising taxes.

Currently, 44 states and the District of Columbia have state-sponsored lotteries. The six states that do not operate a lotto are Alabama, Alaska, Hawaii, Mississippi, Utah, and Nevada (home to the world-famous Las Vegas). These states argue that they already collect enough revenue from gambling and don’t need a competing entity that would cut into their profits.