The Pros and Cons of Lottery Gambling

Lottery games are a large part of the gambling world, and their profits—sales minus payouts, or net revenues—are the largest source of government revenue from gaming in any country. In 1996 lottery sales accounted for 13.8 billion dollars, 32% of all gambling revenues, in the United States alone. Almost all states offer the traditional games of lotto and numbers, although some also sell scratch-off tickets, video lottery terminals, keno, and other games.

Critics of the lottery point out that despite its claims to be harmless, the game tends to attract low-income people and exacerbate social problems like poverty. It also tends to promote addiction and is a popular vehicle for buying into the myth that money obtained by chance is a path out of poverty. Many states, which use the lottery to raise funds for public goods and services, have been criticized for relying on the revenue from these games to boost educational funding, when in fact other factors might be responsible for the increase.

Another argument against the lottery is that it may erode moral standards. The government has long imposed sin taxes on vices that it considers morally wrong, including alcohol and tobacco, with the justification that the taxes discourage people from engaging in those activities. But critics argue that allowing the state to impose a tax on gambling makes it seem less morally wrong than raising taxes on tobacco or alcohol. In addition, they argue that there is little evidence that state lotteries reduce the incidence of problem gambling.