The Hidden Cost of the Lottery

The lottery is a game in which participants pay for a ticket and then attempt to win prizes by matching numbers drawn at random. Prizes are usually cash, but may also include goods or services. The first state lotteries began in the Low Countries in the 16th century, with local towns raising money for public uses such as town fortifications or helping the poor. Today, almost all states offer a state lottery. The story of Tessie Hutchinson in Shirley Jackson’s “The Lottery” provides a chilling analysis of the capacity for cruelty and brutality within human nature and the dangers of uncritical adherence to tradition without questioning its underlying principles.

When state governments began adopting the lottery in the immediate post-World War II period, it was hailed as an opportunity to provide services without imposing especially onerous taxes on middle and working classes. But the lottery is not just a source of painless tax revenue; it is also a source of a particular kind of social control that operates through irrational beliefs about chance and a general sense that “lucky” people should be supported by the rest of society.

The principal argument used by states to justify the adoption of a lottery has always been that players are voluntarily spending their own money (instead of being forced to do so by government coercion) in order to support state programs and services. In that respect, it is like sports betting: a form of gambling that is supposed to be good because it is voluntary.

But there is a hidden cost to this arrangement, and it has not gone unnoticed by many observers. Unlike most gambling activities, the lottery is not subject to federal income taxes, but its winners are required to pay sales and use taxes in all states where they buy tickets. This has led to a situation in which the average lottery winner receives only about 40% of the advertised prize value after taxes.

Moreover, lotteries are designed to appeal to specific constituencies, including convenience store operators (the main lottery vendors); suppliers (heavy contributions by suppliers to state political campaigns are frequently reported); teachers (in states where lottery revenues are earmarked for education) and state legislators. In the long run, this has created a distorted system in which state lottery revenue is used largely to reward these and other special interests rather than to meet core state obligations.

A final point worth noting is that the lottery has a major impact on family life and social relations. As the story of the Hutchinson family shows, this can be a positive or a negative influence, depending on how the family handles it. It is important to remember that, despite the best intentions of its authors, a lottery cannot change a person’s basic personality or values, and it can often have a negative impact on family members. This is why it is important to play the lottery responsibly and never to gamble for more than you can afford to lose.