Is the Lottery a Good Use of State Resources?

Lottery is a form of gambling that involves the drawing of numbers for a prize. Some governments outlaw it, while others endorse it to the extent of organizing a state or national lottery and regulate its operation by, for example, prohibiting its sale to minors and licensing ticket vendors. Despite its controversial legal status, Lottery is an extremely popular form of gambling. In the United States alone, people buy more than $113.3 billion worth of Lottery products every year. This enormous popularity raises several questions about whether the lottery promotes a positive social impact and, in particular, is it promoting the type of excessive gambling that leads to problems with poor people, compulsive gamblers, etc.

In addition, there are three significant disadvantages of playing the Lottery that should be taken into account when considering whether it is a good use of state resources:

People who play the Lottery spend money that could be used for food, health care, or other necessities on something that has exceptionally low to vanishing odds of winning. If they win, the winners are likely to be taxed heavily and may wind up bankrupt within a few years. In addition, they are taking money out of their entertainment budget to buy the tickets, thereby interfering with their ability to enjoy other activities and possibly increasing their debt load. These are all reasons why Lottery is not an appropriate use of state resources. This is especially true in an anti-tax era, when there are more important priorities that can be funded with the lottery revenue.