Does the Lottery Really Serve the Public Good?

The lottery is the most popular form of gambling in America, generating billions of dollars in revenue every year. But does it really serve the public good? And is it worth the hefty cost?

The answer, according to one analysis, depends on the perspective of a state. Lotteries are often sold as painless revenue sources, with states arguing that players are voluntarily spending their money for the benefit of the community. It’s a tempting argument—especially in times of economic stress, when voters and politicians alike want states to spend more and cut taxes.

But this perception of the lottery is misleading, as it ignores the true costs. In fact, state lotteries are expensive for everyone involved, including the winners, who often spend more money on tickets than they win. Furthermore, state governments run lotteries as businesses that prioritize maximizing revenue, not as an instrument of public policy. As a result, they promote gambling, which has significant negative consequences for poor people and problem gamblers.

The first recorded lotteries, which offered tickets with a fixed prize amount of money, were held in the Low Countries in the 15th century. They were used to raise funds for town fortifications and other public works projects. Benjamin Franklin sponsored a lottery in 1776 to buy cannons for Philadelphia’s defense against the British. George Washington also arranged a private lottery to help ease his crushing debts. These historical examples illustrate that a lottery’s popularity does not correlate with the financial health of a state government.