Social Impacts of the Lottery
Whether you play Powerball or your state’s weekly drawings, there are three things to keep in mind. First, the odds of winning are incredibly low. Second, lottery proceeds reduce the percentage of state revenue that can go toward public programs, like education. And third, there are negative social impacts from the lottery.
Often, state lotteries are viewed as a way to fund state services without raising taxes on the middle and working classes. This view was popular in the immediate post-World War II period, when states could expand their social safety nets without putting undue pressure on those who paid the majority of state taxes.
In reality, however, the growth of lotteries has been fueled by a variety of factors, including a declining tax base, competition from other forms of gambling, and a growing number of consumers who are willing to spend their money on the hope of becoming rich overnight. As a result, most state lotteries have evolved into complex systems that are difficult to control, with a range of competing constituencies: convenience store operators (who sell the tickets); lottery suppliers (heavy contributions by these companies to state political campaigns are often reported); state legislators who quickly become accustomed to the additional revenue; and of course the general public who plays the games.
In addition, lotteries can have a disproportionate impact on lower-income individuals who are more likely to spend money on tickets despite the low odds of winning, thereby exacerbating existing social inequalities. Furthermore, many lottery winners are unable to handle sudden wealth, and end up losing most or all of their prize money.