The Pros and Cons of Playing the Lottery
A lottery is a gambling game in which people buy numbered tickets and win prizes if their numbers are drawn at random. It is also a method of raising money, especially for public charitable purposes. A number of countries have state-sponsored lotteries. People can also play private lotteries. Regardless of whether they are legal, lottery games can be very addictive. They can even cause a person to lose control of their finances and end up in debt.
The practice of distributing property or other assets by drawing lots has been in use for centuries, dating at least to the Old Testament commandment that Moses should take a census and divide land among the people by lot. In the fourteenth century, it became common in the Low Countries, where towns held lotteries to build town fortifications and to provide charity for the poor. Lotteries spread to England, where Queen Elizabeth I chartered the nation’s first, in 1567. By the late eighteenth century, a growing number of states began introducing them.
It’s a shrewd political strategy, but it’s not without its problems. First, it shifts the burden of paying for government services from property taxpayers to lotteries. Second, it promotes the notion that wealth is a gift from God, which is incompatible with the biblical insistence on working for your own food (Proverbs 23:5). And, finally, it distracts from the fact that lottery winnings are often short-lived and that true wealth comes from diligent work.
Many rich people do play the lottery, and some win large jackpots—one of the largest was a quarter of a billion dollars. But the wealthy typically buy fewer tickets than those earning less than fifty thousand dollars a year, and they spend a smaller percentage of their income on them. In fact, a study by the consumer financial company Bankrate shows that players making more than fifty thousand dollars a year spend an average of one per cent of their income on tickets; those earning less than thirty thousand dollars spend thirteen per cent.
Despite the criticism, lotteries continue to be popular with voters. They are viewed as a way to raise money for a particular public good and are popular during times of economic stress, when the prospect of tax increases or cuts in government spending may be particularly unpopular with the electorate. In the post-World War II period, for example, the Northeast and Rust Belt states adopted lotteries to expand their social safety nets without offending an anti-tax electorate.
But studies have shown that the popularity of lotteries isn’t related to the state’s actual fiscal health. The real reason is that the proceeds are seen as a way to avoid increasing taxes on the wealthy, which voters find more palatable than reducing benefits for the middle class and the working class. This is a flawed rationale, and it’s time to put a stop to it.