Although the casting of lots to determine fates or rewards has a long history, it is less common in modern society for people to bet on lotteries for material gain. But when they do, the winners often find themselves in trouble.
For example, a woman named Kathy Lesser won the Powerball lottery in 2006 and spent her winnings on a new house and other luxury goods. Her debts soon grew too large to manage, and she filed for bankruptcy in 2012. While many wealthy individuals play the lottery, they buy fewer tickets than do those on modest incomes. According to a study by consumer financial company Bankrate, those earning more than fifty thousand dollars a year spend about one percent of their income on ticket purchases; those making less than thirty thousand per year spend thirteen percent.
In the early years of America, lotteries were a common method of raising money for public works and charitable institutions. Many of the country’s first college buildings were financed with the proceeds of lotteries, and the game spread quickly to England’s colonies in North America. Despite Protestant proscriptions against gambling, they became a common form of socialization among the colonists, and their profits helped to finance the settlement of Europe’s eastern seaboard.
State governments quickly took over the management of these lotteries, and a number of different strategies evolved to raise revenue. Some states offered a single large prize, and others used a series of smaller prizes to attract bettors. Still other lotteries offered a chance to win an entire state, and others sold tickets to individual towns and communities.
Lottery proceeds go to a wide variety of uses, from the purchase of public buildings to the funding of religious schools and medical research. In addition, many states use the proceeds to supplement their general budgets. Because of their broad popularity, state lotteries have developed extensive and particular constituencies, including convenience store operators (the usual vendors); lottery suppliers (who make heavy contributions to state political campaigns); teachers (in states that earmark revenues for education) and state legislators.
Despite the enticing prizes, there are serious concerns about the impact of the lottery on society. Some critics have portrayed it as a “tax on the stupid.” But this is misleading: even the most intelligent persons understand that there is a much greater likelihood of being struck by lightning than of winning the Powerball jackpot.
The dangers of lottery addiction are also real. As with other addictive products, such as cigarettes or video games, the lottery relies on the psychology of addiction to sustain its sales. Everything from the look of the tickets to the mathematics behind them is designed to keep players coming back for more.
Whether or not they have the courage to admit it, lottery officials take advantage of this psychology. They also employ the same techniques as marketers of other addictive products, manipulating consumers’ emotions and stoking their greed. In addition to encouraging excessive spending, the lottery undermines personal responsibility and financial discipline. It is not surprising, then, that lottery participation has a negative impact on the quality of life of those who participate.
