The Lottery and Public Policy

The practice of distributing property or money by lot has an ancient history, including several instances in the Bible. But state-sponsored lottery games, which are not confined to religious rituals or other cultural traditions, are more recent. In modern times, state governments have established a variety of lotteries to generate revenue and have become increasingly dependent on them.

Lottery proceeds typically increase dramatically when first introduced and then level off, leading to a constant search for new ways to attract and retain players. A typical approach involves adding new games and a heavy promotional push. This push often has the effect of promoting gambling as something that is healthy, and it can obscure the regressivity and other problems associated with the lottery.

A key issue is that despite all of the hype, few states have a coherent “lottery policy.” Most simply legislate a state monopoly; establish an agency or public corporation to run it (as opposed to licensing private firms in return for a portion of revenues); begin with a modest number of relatively simple games; and, due to ongoing pressure to raise additional revenue, progressively expand its offerings.

This pattern is not unique to lotteries; it is the general way in which many forms of public policy are made. Decisions are made piecemeal, with authority fragmented between the legislative and executive branches and even within each branch, and the interests of the broader population are rarely taken into consideration.