Lotteries are a common way for state governments to raise money for a variety of purposes. But they’re not without controversy. Some critics contend that they promote gambling addiction and have a regressive impact on low-income communities. Others point out that lottery advertising is often deceptive and may present misleading information about odds of winning, inflate the value of prizes (lotto jackpots are paid in equal annual installments over 20 years, with inflation dramatically eroding their current value), and so on.
It’s hard to argue with the fact that many people like to play the lottery. There’s an inextricable human impulse to gamble, and lottery ads stoke this appetite by dangling the prospect of instant riches. It’s a tempting offer, especially in an era of limited social mobility and increasing inequality.
The practice of allocating property or other assets by lot goes back centuries. The Old Testament instructs Moses to divide the land among Israel’s tribes using a lottery, and Roman emperors used it to give away slaves and property during Saturnalian feasts.
But even though most people know the odds are bad, they still keep playing. A recent study found that the average American plays the lottery four times a year, spending $50 or $100 a week. Some people play for years, despite the skepticism of friends and family. This irrational gambling behavior, combined with the appeal of instant wealth, makes lottery tickets a big business for state governments.
As states struggle to balance budgets, lotteries provide valuable revenue, and they’re often the target of legislative attack. But state officials are unable to change the underlying culture that has made lottery play a habit for so many people, or stop the evolution of the industry itself. Lottery officials and suppliers develop broad constituencies that include convenience store owners and their employees; lottery-related advertisers; teachers in states where lottery revenues are earmarked for education; and state legislators, who quickly grow accustomed to the extra revenue.
And then there are the public services that lottery profits support, such as prisons and roads. Lottery proceeds are also used to fund health care, welfare, and other programs that have traditionally been the responsibility of local communities. But when state governments rely heavily on lottery revenue, they run the risk of creating a culture in which people see gambling as a “right” and as a painless form of taxation.
I’ve interviewed a lot of lottery players, including those who play for years, sometimes up to $100 a week. They’re a fascinating group. They have these quote-unquote systems that don’t jibe with statistical reasoning, about lucky numbers and stores and times of day to buy tickets and what types of tickets to get. But they all share a common conceit: Their irrational gambling behavior doesn’t matter because they’re doing it for a good cause. And that’s the real reason they play. It’s not because they believe that their chances of winning are bad; it’s because they think that’s the only way out of their predicament.