Lottery – Raising Money For Public Purposes

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Lottery is a form of gambling in which people try to win prizes by matching numbers, symbols or other data. The practice is legal in most countries. Many state and local governments use it to raise money for a wide variety of purposes. The prizes are usually cash or goods. Often, the proceeds from a lottery are used to provide education, public works, health care and other services.

The principal argument in favor of lotteries has always been that they provide a kind of painless revenue, because players voluntarily spend their money (as opposed to being taxed out of it) and can be targeted specifically at disadvantaged groups such as children. This was particularly true in the immediate post-World War II period, when states were able to expand their array of social safety net programs without imposing particularly onerous taxes on the middle and working classes.

But lottery commissions have moved away from that message, and now rely on two messages primarily. The first is that playing the lottery is a fun experience, and they do make this point a lot. The second is that even if you lose, you should feel good about it because it raises money for the state.

Both of these messages obscure the regressivity of lottery play. It’s a lot more common for poor people to spend a large share of their income on tickets than it is for rich people. And they do raise some money for the state, but not as much as you might think.