The casting of lots for decisions and fates has a long history—even several instances in the Bible. But using lotteries for material gain is of more recent origin. Its early American history is a tale of boom and bust.
State lotteries have a broad and deep constituency. There are the players themselves (who can spend billions each year), convenience store operators and their employees, lottery suppliers who make heavy contributions to state political campaigns, teachers in those states where lottery revenues are earmarked for education, and so on. But the broader public is also very interested in lotteries, as evidenced by the wide support for them in all states that have adopted them.
Lottery revenues have been a welcome boon for many state governments. They allow states to expand services without the burden of onerous taxes on lower and middle class taxpayers. But that arrangement may be coming to an end. The lottery is a classic example of public policy being made piecemeal and incrementally, with the general welfare taken into consideration only intermittently if at all.
It has been a major factor in the evolution of state government and a key element in the growing popularity of gambling. But it has also been a major factor in the rise of inequality and limited social mobility. Lottery advertising, with its lurid headlines of huge prizes, is helping to fuel those trends by offering the prospect of instant riches. And while there is an inextricable human urge to gamble, it’s important to remember that there are real consequences to winning the lottery.