The lottery has long been a favorite of state governments looking to boost revenues without increasing taxes. But while the government is in many ways in the business of promoting gambling (even though that’s only a small percentage of the revenue it generates), it may also be at odds with the public’s interest by doing so.
Lottery was first introduced to the United States by British colonists, who sought to cut into illegal games and provide additional funds for education. Lotteries became an important part of the American economy in the early years of the country, funding roads, canals, libraries, churches, schools, and other infrastructure projects. Some even financed the Revolutionary War.
In modern times, the vast majority of lottery proceeds are used for a mix of purposes. A large portion gets paid out as prizes, while administrators keep a smaller percentage to cover costs such as advertising and salaries for lottery officials. In addition, some of the money is earmarked for state programs such as education and gambling addiction treatment.
A small portion of the money goes toward commissions for retailers that sell tickets. But because the lottery is primarily a business aimed at maximizing revenues, its promotions are largely geared towards convincing people to spend their money on it. And in a society where income inequality and social mobility are increasing, that’s a dangerous proposition. The ugly underbelly of the lottery is that it promises a chance at instant riches for everyone who buys a ticket.
