Playing Lottery

Introduction

Defined in basic terms, lotteries are games of chance often regulated by the government in which players compete to win cash or other prizes. In the U.S., 42 state governments and the District of Columbia run lotteries, using them as a means of raising revenues to fund a wide range of public projects. (At present, there is no lottery sponsored by the federal government.)

Of the staggering $56 billion that Americans spent playing state-run lotteries in 2006, $17 billion went directly to state governments, while the remainder was awarded as prize money or used to cover the advertising and administrative costs of the lotteries (Stetz pp. 10). Lottery proponents emphasize that state governments use proceeds from their lotteries to finance public services. For instance, more than 20 states partly fund their education systems with lottery revenues.

Lottery proceeds are also used for construction financing, senior citizens' programs, economic development and various other projects. Supporters therefore assert that lotteries are worthwhile, not just because they are entertaining, but because the funds they raise are used for everyone's benefit.

Critics

Nevertheless, critics of lotteries argue that people with low incomes and education levels tend to spend more heavily on lottery games than the wealthy and highly educated. Since the odds of winning a major jackpot are so remote, critics say, poor people are essentially throwing their money away when they play the lottery something they literally cannot afford to do. Detractors also question whether lottery proceeds actually fund important public projects, or merely encourage more wasteful spending by already-bloated state governments.

The controversy over lotteries is nothing new; for centuries, observers on both sides of the issue have argued over whether lotteries are a legitimate way to raise public funds, or a harmful form of state-sponsored gambling (Stetz pp. 12). But the controversy has intensified recently, due to signs that the nature of U.S. lotteries is changing. For example, many states are introducing new scratch-off lottery tickets that cost as much as $50 much more than the typical ticket of days past. Proponents say the new tickets will generate increased excitement about the lottery and more revenue, while critics blast the tickets for being too expensive and contributing to heavy (or problem) gambling.

Another point of contention is that several states are considering privatizing their lotteries i.e., selling or leasing the lotteries to private companies in return for an immediate windfall of cash. Supporters of privatization argue that several large states, such as New York and California, urgently need to privatize their lotteries in order to plug shortfalls in their budgets. Critics, however, express concern that private companies would run lotteries in a more aggressive fashion than state governments, which could lead to heavier lottery gambling and more exploitation of low-income players. The debate over lotteries continues unabated. Lottery supporters stress the many benefits that are derived from lotteries, noting that proceeds go towards funding education programs, infrastructure improvements and other vital public interests. They also question the notion that lotteries are designed to exploit poor and ...