In a time when states are struggling to balance budgets, there is no shortage of ideas for new sources of revenue. Among the most popular are lotteries. Lotteries have a long history, with some examples even appearing in the Bible, but state-sponsored lotteries are relatively recent.
Most lottery programs begin with a legislative act to establish a state monopoly; designate a government agency or public corporation to run the lottery; and start with a modest number of relatively simple games. As revenues grow, the lottery progressively expands in scope and complexity. Lotteries are advertised with a mix of flamboyance and frugality. The prizes may be huge, but the likelihood of winning is very low.
Many of the people who play lotteries do so to support a particular cause, such as education or medical research. This practice is called “earmarking,” and it allows legislators to use lottery proceeds in addition to general appropriations for the purpose specified. Critics point out, however, that the earmarked funds are no different than those from a regular tax, and that they do not increase overall funding for the specified purpose.
In fact, if there is any one moral argument against lotteries it is that they are a form of regressive taxation. The poor and working classes are the biggest players in lotteries, and they tend to spend a greater percentage of their income on tickets than do the wealthy. In addition, it is argued that the illusory hope of wealth from a lottery ticket is simply an alternative to paying a real tax, such as sales or property taxes, that hits everyone equally.