Public Interest and the Lottery

Lottery is an activity in which tickets are sold and prizes awarded based on the drawing of lots. Historically, the practice of drawing lots to determine various events dates back thousands of years. In the Bible, the Lord instructed Moses to take a census of Israel and divide land among its people by lot. Later, Roman emperors used lotteries to give away property and slaves as a form of entertainment during Saturnalian feasts. During the seventeenth century, lotteries were common in Europe as an alternative to taxation for towns seeking to raise funds for fortifications or other purposes.

Modern state-run lotteries are a major source of revenue in many countries. In the United States, lottery proceeds are used to fund education, roads, prisons and hospitals, as well as some government-sponsored social programs. In addition, some states sell lotteries to fund military operations and veterans’ affairs. While there are arguments for and against these uses of lottery revenues, there is one clear issue that arises from the use of lotteries to generate revenue: public interest and the state’s duty to protect its citizens from harm.

Most modern state-run lotteries evolved from a combination of historical practices and new developments. In the first place, most lotteries are designed to generate revenue through the sale of a small number of relatively cheap tickets with very high prizes. State officials often begin by imposing a maximum price per ticket and limiting the number of games available. Then they rely on advertising to promote the lotteries and push for expansion, especially into new games like video poker.

A classic case of public policy being made piecemeal, lottery development usually happens without the benefit of broad-based review. In the end, most states have a lottery system with a long history, a limited number of relatively simple games and a heavy reliance on advertising.

Those who advocate state involvement in the lottery argue that it is an effective tool for raising revenue for many worthy purposes. Critics, however, contend that the promotion of gambling is harmful to society, and that lotteries are a form of disguised taxation on low-income families. Some also say that state-sponsored gambling promotes addictive behavior and may lead to other problems such as prostitution and illicit drug trafficking.

Whether the benefits outweigh the costs of lotteries is an important issue that affects everyone. But as long as the industry continues to grow, it will require ever more attention from legislators and the public at large. This is an example of a business model that works against the overall good and must be reevaluated in light of the public’s needs. The question is: What should that reevaluation look like? This article explores some possible answers. – Adapted from a version published in “Public Eye” (December 2001) – Copyright 2001 by The Trustees of Princeton University. Used with permission. Reprinted with permission of the publisher. To purchase a subscription to Public Eye, click here.