By adminweaSince the modern era of state lotteries began, they have grown in popularity and complexity. The process usually follows a similar pattern: a state legislates a monopoly for itself; establishes an agency or public corporation to manage operations; begins with a modest number of relatively simple games; and, under pressure from the constant demand for new revenues, progressively expands the lottery’s size and complexity. This expansion is fueled by the demand for additional prizes and the need to maintain an attractive marketing strategy. As a result, the lottery’s advertising is aimed at persuading certain target groups to spend their hard-earned money on lottery tickets.
Many people play the lottery simply because they like to gamble. In addition, some people may find that the entertainment value (or other non-monetary benefits) they gain from playing the lottery is greater than the disutility of a monetary loss. Therefore, the purchase of a ticket represents a rational decision for them.
In contrast, critics of the lottery argue that its promotion of gambling behavior has serious negative consequences. They cite evidence of compulsive gambling behavior and its regressive effects on lower-income groups. Furthermore, they point to the fact that, as a source of revenue, the lottery runs at cross-purposes with the state’s duty to protect the welfare of its citizens.
Regardless of these criticisms, the lottery remains popular. In part, its popularity is based on the perception that lottery proceeds are used to support a particular public good, such as education. This argument is particularly effective during times of economic stress, when the prospect of a tax increase or cuts in other government programs may be politically unpalatable.