The lottery is one of the most popular forms of gambling in America, and states have been using it for centuries to raise revenue. It is easy to see how state officials become enamored of the money generated by this activity, but the overall public welfare implications should be considered carefully before allowing the state to profit from promoting an activity that causes people to lose their hard-earned dollars.
In the immediate post-World War II period, many states took advantage of the lottery as a means to expand their array of services without raising taxes too much on lower income households. In recent years, however, the growth of the lottery has been accompanied by a steady rise in state budget deficits, and pressures to increase lottery revenues are being made by legislators, state governors, and local mayors.
Lottery proceeds are used for a variety of purposes, with most of it going to prizes, and the rest going toward state administrative costs (like advertising) and paying retailers a commission on ticket sales. In addition, there is often a substantial percentage of proceeds that goes to help people with gambling addictions.
Lottery officials rely on two messages in their promotions: first, they tell people that playing is fun and can lead to life-changing experiences. They also promote the message that it is a civic duty to support the state by buying tickets, particularly in times of fiscal stress. These messages have been successful, and the lottery’s popularity has remained high even when state government’s financial condition is strong.