Issues to Consider When Adopting a Lottery


The casting of lots to determine fates has a long history, including several instances in the Bible. More recently, it has been used in a variety of ways for material gain, most prominently in public lotteries. These have become a major source of state revenues, and are among the most popular forms of gambling.

But there are a number of issues that state officials need to consider when they adopt a lottery. First, lotteries are inherently unfair to some groups of people. For example, they may disproportionately benefit the rich or the young, or reward those with more education or wealth. They also can have negative effects on social mobility, and are likely to exacerbate problems of inequality and poverty in a society that already faces serious economic challenges.

Moreover, the money that is raised by lotteries does not always go to good causes. In many cases, the money is spent on promotion, administrative costs, and profits for the promoters. This means that the actual amount of money awarded to the winners is less than it would be if all of these costs were removed. It is important to understand this when evaluating the merits of a lottery and determining whether or not it is worth supporting.

A third issue is that lottery revenues are a very small percentage of overall state revenue. This means that even if the prize is enormous, it will not do much to solve a state’s financial problems. It is important to remember that most state governments are financed by taxes on citizens, and a lottery is simply a substitute for other state revenue sources.

Finally, a fourth issue is that state officials are not taking into account the overall impact of the lottery when they make decisions about it. Instead, they often focus on a few specific constituencies – convenience store operators (the lottery’s usual vendors); lottery suppliers (heavy contributions by these companies to state political campaigns are frequently reported); teachers, in states where lottery revenue is earmarked for them; and, in many cases, state legislators, who quickly come to depend on the steady stream of revenues that it brings in.

In some cases, these benefits are based on the fact that lotteries are an excellent way to raise money for a wide range of public purposes without raising taxes. This is a particularly attractive option in the immediate post-World War II period, when states could expand their array of services without undue burdens on the middle and working classes. But that arrangement began to crumble in the 1960s, and by the 1970s, lotteries were generating little more than the level of revenue they were originally designed to generate.