In America, people spent upward of $100 billion on lottery tickets in 2021. State governments promote them as a way to help schools, veterans’ health programs and so on without raising taxes on middle- and working-class citizens. But just how important that revenue is in the overall state budget, and whether it’s worth sacrificing other public services, deserves scrutiny.
Lottery advertisements depict past winners achieving newfound wealth and happiness, tapping into the aspirational desires of potential participants. These narratives make the improbable prize seem attainable and life-changing, which helps explain why people play, even though odds are infinitesimal.
The other message a lottery sends is that playing is fun. It’s an enjoyable experience, from buying the ticket to scratching it. But this re-packages the whole thing as a game, which obscures its regressivity and the fact that it involves substantial amounts of money for tiny chances of winning.
For those who do win, they have the choice of receiving their prize in a lump sum or annually in installments. But whichever option they choose, federal and state taxes are a big chunk of their winnings. In some cases, the total amount they receive may be only half of what they paid for the ticket.
While lottery ads may promote the idea that everyone has a chance to win, the truth is that it’s much more likely for some people than others. And these disproportionately lower-income, less educated and nonwhite Americans are a major slice of the lottery’s player base.