Is Running a Lottery Appropriate for Government?

A lottery is a form of gambling where you buy a ticket and then hope to win a prize. The practice of casting lots to make decisions and determine fates has a long record in human history, including several instances in the Bible, but lotteries that distribute money prizes are more recent. They first appeared in the Low Countries in the 15th century, when towns raised funds to build town fortifications and help the poor by selling tickets.

Lottery revenues typically expand dramatically upon their introduction, then plateau and possibly begin to decline, prompting a constant effort to introduce new games in the hopes of maintaining or increasing revenue. But the very nature of the lottery, which dangles an unobtainable dream as its main draw, also makes it hard for people to put the brakes on their participation.

In addition to a desire to win money, most people play the lottery because they plain old like to gamble. In fact, there is a fairly strong inextricable human impulse to take risks for small rewards. But it is worth asking whether running a lottery is an appropriate function for government, which promotes gambling while pretending to be doing something different.

Most states devote about 50% to 60% of lottery revenue toward prizes, with the remainder divided between administrative and vendor costs and the state’s designated projects. Some states, including Maryland, dedicate lottery proceeds to a wide range of programs and services. Others use it to help fund public schools, which are required by law to provide free and adequate education to all children.