The Popularity of Lottery Fund Raising


A lottery is a game in which people pay money for the chance to win a prize. In modern times, lotteries have become popular for raising funds to promote a variety of projects, from constructing highways to building public schools. In some states, lotteries are an integral part of state government. In others, they are a relatively new form of taxation. Despite these differences, there are some general features that make lottery a popular way to raise funds.

Those who play the lottery are generally aware that they are unlikely to win, but they still find it fun to try. This is why lottery playing is so addictive. Many people form “syndicates,” groups that share the cost of tickets, and often have “systems” for buying tickets (although those systems are usually irrational).

Some states have strict gambling laws and ban lotteries altogether, while others have looser regulations. Regardless of the legality, people continue to play. In fact, only one state has ever voted against establishing a lottery: North Dakota. Lottery proponents cite the benefits of taxation as a major factor in winning public approval. In fact, however, studies show that a state’s objective fiscal health does not appear to have much effect on whether or when a lottery is established.

The practice of determining fates and distributing property by lot has a long history, as recounted in the Bible. Moses was instructed to divide the land of Israel by drawing lots, and Roman emperors held games of chance that gave away slaves and goods. The first public lottery in Europe was a fund raised by lot for municipal repairs in Bruges, Belgium in 1466. Benjamin Franklin promoted a lottery in 1776 to finance his unsuccessful attempt to obtain funds for American troops. In the 1830s, private lotteries financed the founding of such American colleges as Harvard, Dartmouth, Yale, King’s College (now Columbia), and William and Mary.

In the twentieth century, the popularity of lotteries soared in tandem with the decline in the financial security of working Americans. The gap between the rich and the poor widened, pensions and job security began to disappear, and medical costs rose. People came to believe that the old national promise, that hard work and education would ensure a decent living for all, no longer held true.

Although some defenders of the lottery argue that lottery playing is not a form of gambling, others contend that it is regressive. The bottom quintile of the income distribution does not have enough discretionary money to buy large numbers of tickets, and so they are not a significant part of the market. The 21st through 60th percentiles are the main lottery players, and they spend a larger share of their income on tickets than the rest of the population. This is a regressive system, but it serves its purpose. It allows those with a little money to dream about the possibility of becoming wealthy. It also reassures them that they are not completely dependent on their employers for a decent living, that they have a shot at the American dream.