Lottery – Is it Ethical for States to Promote Gambling?

Lottery is a form of gambling in which numbers are drawn to determine the winner. Unlike most other forms of gambling, however, where the money is withdrawn from the game after a win, lottery winners are able to receive the entire prize in one lump sum, before income taxes. This feature makes lottery games relatively attractive to the majority of gamblers. In addition, players may choose to take advantage of a variety of strategies to improve their odds of winning the jackpot.

As a result, state lotteries have become a powerful source of revenue for many governments. In 2021 alone, Americans spent more than $100 billion on tickets. But is it ethical for states to promote gambling and exploit a population that can’t afford to lose money?

Most states’ lotteries follow a similar pattern: the state legitimises the monopoly; establishes an agency or public corporation to run it; starts operations with a modest number of relatively simple games; and, due to constant pressure for additional revenues, progressively expands its offerings. As a result, few, if any, lotteries have a coherent public policy.

This is not to say that public officials aren’t aware of the problems that accompany a reliance on lottery funds. Indeed, the lottery industry is rife with reports of corruption and abuses. Yet these issues aren’t enough to justify promoting a system that is fundamentally flawed.

Moreover, lotteries tend to be highly focused on attracting customers from a few specific constituencies: convenience store operators (to whom promotional material is heavily targeted); vendors who sell the tickets or merchandise (heavy contributions from these suppliers to state political campaigns are widely reported); and teachers, who often serve as volunteer mentors for lottery-related student programs. While this focus on marketing and maximizing profits isn’t necessarily problematic, it raises questions about how much the lottery truly serves the public interest.

It’s also worth noting that despite all the promotional materials that emphasize the irrational nature of the lottery, some people do play it seriously. I’ve interviewed a number of lottery players, including some who spend $50 or even $100 a week on tickets. Those people go in clear-eyed about the odds of winning and have all sorts of “quote unquote” systems for picking their numbers. The fact that they’re willing to put in such an enormous amount of time and effort shows how committed they are to the idea of getting lucky.