Lottery Politics

Lottery is a type of gambling in which numbers are drawn at random to determine winners. State governments sponsor and operate lotteries, with the revenues typically earmarked for public purposes such as education, roads, and other infrastructure projects. Despite their widespread popularity, many critics charge that lotteries are addictive and promote irresponsible gambling behavior. They also argue that the state faces an inherent conflict between its desire to generate revenue and its duty to protect the public welfare.

States often establish a state lottery agency or public corporation to run their operations; legislate a monopoly for themselves (rather than licensing private firms in return for a share of the profits); begin with a modest number of relatively simple games; and, under pressure for additional revenue, progressively expand the size and complexity of their offerings. As the industry grows, it becomes increasingly difficult for state officials to control the operation without encroaching on the rights of players and other stakeholders.

State lotteries are a classic case of policy being made piecemeal, with little or no overall overview. As a result, state officials inherit a gambling policy that they can hardly control and which may, in the end, prove to be at cross-purposes with other state priorities. For example, a state that wants to increase its revenue base can impose additional fees on its players or cut back on its prize payouts — both of which tend to reduce public enthusiasm for the lottery.