Public Policy and the Lottery
In the early days of American state lotteries, the revenue they brought in was used to finance a wide variety of projects from building roads and jails to helping poor people buy homes. It was a time when America’s banking and taxation systems were still in their infancy, and leaders such as Thomas Jefferson and Benjamin Franklin saw great usefulness in lotteries.
Traditionally, state lotteries are public games that sell tickets for a future drawing of prizes, such as cash or goods. But innovations in the 1970s transformed the industry, and today most lotteries sell instant games such as scratch-off tickets that offer lower prizes but a much greater chance of winning. This change has dramatically increased the number of players. At the same time, revenues have plateaued or begun to decline, and this has prompted the introduction of new games.
The public’s interest in the lottery has become a source of intense debate and polarization. Supporters see it as a painless alternative to higher taxes and a way for states to fund services that they have long deemed essential. Opponents attack it as dishonest, unseemly, and regressive in its impact on the poor.
As a result, many state lotteries face difficult policy choices, including how to deal with compulsive gambling and the regressive effects of their gaming operations. In general, lottery officials are not given a great deal of discretion in making these decisions. Public policy is typically made piecemeal, and the responsibilities of lottery officials are fragmented, with authority shifted between and within various branches of government. As a result, few if any states have an overall “lottery policy.”
In the early days of American state lotteries, the revenue they brought in was used to finance a wide variety of projects from building roads and jails to helping poor people buy homes. It was a time when America’s banking and taxation systems were still in their infancy, and leaders such as Thomas Jefferson and…