Public Policy and the Lottery

A lottery is a form of gambling in which numbers are drawn to determine winners of prizes. It is a common way to raise money for government, charities and other organizations. The concept is easy to understand: people purchase tickets with a variety of numbers on them, and the ones that match winning combinations on the front win a prize. In addition, some lotteries offer a chance to buy extra tickets for additional chances of winning. Many people have fantasized about what they would do with the money if they won the lottery. Some envision shopping sprees and luxury vacations, while others imagine paying off mortgages and student loans and putting the rest into savings and investment accounts.

The lottery is a classic example of public policy making at the local level, in which the decisions about how to run a lottery are made piecemeal and incrementally, and in which the general desirability of the lottery is only rarely taken into consideration. As a result, the lottery quickly develops broad and diverse constituencies. These include convenience store operators (who often act as the main distributors for tickets); suppliers of lottery equipment and services (which can contribute heavily to state political campaigns); teachers, in states in which lottery revenues are earmarked for education; and, of course, the state legislators who are increasingly dependent on the income from the lottery.

The prize pool for lottery games tends to grow to apparently newsworthy sizes through a process that relies entirely on chance, and the publicity generated by these super-sized jackpots drives ticket sales and further increases the prizes that can be won. But does running a lottery — as a business, with the aim of maximizing revenues — serve the public interest? Especially when those revenues are largely derived from a form of gambling that can have detrimental consequences for compulsive gamblers and lower-income families.