Public Policy and the Lottery

The lottery is a classic example of how public policy is made without any overall framework or plan. State lotteries have evolved piecemeal, with little or no general oversight of their operations, which are largely dependent on a stream of revenues from the public. In the case of the lottery, that revenue stream is a major source of power for public officials and a significant element of the state’s budget, but it also distorts their thinking and limits their options.

People play the lottery because they like to gamble, even if they don’t really understand how it works or why. They’re chasing the dream of instant riches, especially in an era of income inequality and limited social mobility. The lottery offers a chance to get ahead, but the truth is that your chances of winning are about the same whether you buy one ticket or fifty.

The first lottery-style games that offered tickets for sale and prizes of money were held in the Low Countries in the 15th century, with towns raising funds to fortify their walls or help the poor. They were a precursor of the modern state lottery, which grew in popularity in the immediate post-World War II period as states sought additional sources of revenue to expand their social safety nets without burdening middle class and working class citizens with particularly onerous taxes. This arrangement is now collapsing, with states facing mounting deficits and falling revenue from the federal government.