Lottery Advertising Benefits the State

The lottery is a form of gambling in which numbers are drawn for a prize. Some governments outlaw it, while others endorse it to the extent of organizing a state or national lottery. The lottery is popular in the United States, where it is estimated that 60% of adults play at least once a year. The lottery’s revenue is usually used to fund state education, public works projects and social services programs. In addition, some states use the money to provide scholarships for students.

The word lottery is derived from the Latin term sortilegij, meaning “casting of lots.” The ancient Romans practiced a kind of lottery in which they placed bets on various events. In the early American colonies, Benjamin Franklin ran a lottery in 1748 to raise funds for a militia in Philadelphia. The lottery also helped John Hancock build Faneuil Hall, and George Washington ran a lottery to help finance a road over the Virginia mountains.

In recent years, state governments have adopted the lottery as a source of tax-free revenue. The principal argument used to promote the lottery has been that players voluntarily spend their money for the benefit of the state, a concept that appeals to the anti-tax sensibilities of many voters. Consequently, lottery revenues have increased in the wake of every state financial crisis. As a result, the question has arisen whether or not lottery advertising actually benefits the state, especially in terms of its impact on poorer people and problem gamblers.

As with all gambling activities, lottery participation varies by socioeconomic status and other factors. In general, the rich are more likely to play, and women tend to play less than men. Blacks and Hispanics play more than whites, and the young and old play less than those in the middle age ranges. Moreover, lottery participation declines with the level of formal education. The reasons for these differences are unclear, although some scholars have suggested that the availability of other forms of gambling may have played a role.

Since New Hampshire initiated modern era of state lotteries in 1964, the basic pattern has been consistent: a state legislates a monopoly for itself; establishes a state agency or public corporation to run it; begins with a modest number of relatively simple games; and, due to the constant pressure to increase revenue, progressively expands its portfolio of offerings.

The ubiquity of the lottery raises important questions about the nature and limits of state power. Is it right for the government to encourage a behavior that has significant negative consequences for certain groups—such as problem gamblers, the poor and the elderly—and that can easily become out of control? Should the state promote a gambling activity that has the potential to undermine the integrity of society and the economy, or should it concentrate on other priorities, such as education and public safety?