Lotteries are a big business, generating billions of dollars each year. It is not hard to see why they are so popular: Almost everyone loves to gamble, and the lottery is an easy way for most people to do it without having to risk very much money. Lottery advertising is aimed at getting all kinds of people to spend their money on tickets. But does it work? And what are the broader social implications of lotteries?
Generally speaking, a lottery is a game in which people pay for a chance to win a prize, the value of which can range from cash to jewelry to a new car. There are many different types of lotteries. Some are used for military conscription and commercial promotions; others, such as those involving property, are more like traditional gambling lotteries. All of them, however, have in common the fact that consideration, a payment of some sort, is required. The word “lottery” is probably derived from the Dutch word lot, which itself is likely a calque of the Middle French word loterie, referring to “the action of drawing lots.”
Modern state-sponsored lotteries follow a similar pattern: a legislature legislates a monopoly for themselves; establishes a government agency or public corporation to run the lottery; begins operations with a modest number of relatively simple games; and, under pressure to generate additional revenues, gradually expands the scope of the lottery. This expansion is often fueled by a desire to lure away gamblers from other states and to attract affluent patrons to the new games.
Lottery players are disproportionately lower-income, less educated, and nonwhite. In some cases, they are also heavily dependent on social welfare benefits. Lottery play declines with increasing levels of education, and women are less likely to play than men. But it is the overall trend that matters, and it is here where the social impact of lotteries becomes clearest.
A large percentage of lottery revenue is generated by a very small group of players: the top 20 to 30 percent of all ticket buyers. These players are a very diverse group: convenience store owners (whose employees are typically lotto salespeople); suppliers of lottery products (who make heavy contributions to state political campaigns and often serve on local school boards); and, most important of all, state legislators, who quickly become accustomed to the extra revenue.
In addition to the obvious draw of huge jackpots, there is a widespread belief that winning the lottery will lead to improved life circumstances for winners and their families. It is true that some winners report that their lives have changed dramatically, but it is hard to argue that this is a result of playing the lottery. It is far more likely that the improvements are a result of other factors, such as a rising economy, better medical treatments, or simply better luck.