Public Policy and the Lottery
The lottery is a form of gambling in which participants pay for tickets, select numbers or have machines randomly spit them out, and win prizes if enough of their tickets match those drawn. Governments in most states (as well as the District of Columbia) have lotteries, and they generate substantial revenue for state programs that can’t be funded with ordinary taxes. But lotteries also promote gambling and expose players to the dangers of addiction; critics argue that they are harmful and exploitative.
Many advocates of the lottery argue that it allows states to expand their social safety nets without imposing onerous tax burdens on middle-class and working-class families. But others view replacing taxes with lotteries as a slippery slope that eventually undermines the integrity of state governments and creates a reliance on revenue that can’t be easily sustained.
In a state that adopts a lottery, legislators typically establish a commission or board to manage the lottery and its operations. This agency generally has the authority to select and license retailers, train their employees, market the lottery, sell tickets, redeem winning tickets, pay jackpots, and ensure that all participants follow state laws. Unlike other forms of public policy, lotteries are almost always evolving; the initial policy decisions are soon overtaken by new developments. As a result, few state lotteries have a coherent “gambling policy.” Instead, the industry is characterized by a series of short-term responses to specific pressures and concerns.