The lottery is a form of gambling in which participants pay a small sum for the chance to win a large prize. In addition to offering the potential for huge gains, some lotteries raise funds for public services, such as education and veterans’ assistance. Approximately 30% of each ticket sold goes to support important programs like these.
In the past, lotteries functioned much like traditional raffles, where the public purchased tickets for a drawing that would take place weeks or months in the future. However, innovations in the 1970s transformed the lottery industry, introducing a variety of instant games that offered smaller prize amounts and shorter winning periods. As a result, revenues typically expand rapidly upon the launch of a new game, then level off or even decline. To maintain or increase revenue, states often introduce a steady stream of new games.
State lotteries are characterized by extensive specific constituencies, including convenience store owners (who receive substantial commissions on lottery sales); suppliers of equipment and services to the industry (whose heavy contributions to state political campaigns are widely reported); teachers in states where lottery revenues are earmarked for education; and, most importantly, a growing base of committed players who buy lots of tickets. As a consequence, the messages that lottery commissions communicate skew toward two ideas: lotteries are fun and they offer an opportunity to fantasize about accumulating wealth at a cost of only a few dollars.
For some, these are persuasive messages. But for others—many of them people living below the poverty line—the messages are less persuasive. In the end, they may be promoting something quite different: a hidden tax on those with the least to spare.
