The casting of lots for the allocation of property, slaves, and other goods has a long history (as does betting). Modern state lotteries are usually run by a government agency or public corporation that legislates a monopoly; starts with a small number of relatively simple games; and, under pressure to generate new revenues, progressively expands its operations, adding more and more games. The process of lottery expansion often leaves the government at cross-purposes with its broader goals, such as limiting gambling’s effects on low-income people and problem gamblers.
In the 1960s, New Hampshire, a state famously resistant to taxes, approved the first modern state lottery. Other states soon followed suit, especially as they were looking for ways to raise revenue without enraging anti-tax voters.
These lotteries are now widely viewed as one of the main reasons that states have such trouble managing their finances, and there are growing concerns that they promote addictive gambling behavior and regressively tax lower-income people. Critics also argue that, even if these problems are minimal, state governments should not be running commercial activities that they profit from, and that lotteries put the state’s financial interests at odds with its duty to protect the public welfare.
The state’s monopoly over the lottery, coupled with its perpetual need for new revenues, gives it tremendous power to shape the way that people think about gambling. As the author of this essay points out, “The message is that the lottery is good because it’s for the state, which means you feel like you did your civic duty to buy a ticket.” It’s an illogical and counterproductive message.
