Lottery is a classic case of government policy making that occurs piecemeal, with little overall overview and with only intermittent consideration for the impact on the general public welfare. State lotteries usually begin with a small number of relatively simple games and then, based on continual pressure for new revenues, rapidly expand their operations.
Lotteries are popular because they appeal to people’s natural urge to dream big and to fantasize about winning money. Lotteries also appeal to the myth that winning a large prize is a meritocratic way to get rich, and to an increasing sense of materialism that says everyone can be rich with only the right mix of hard work and luck.
One argument in favor of lotteries is that they allow states to raise revenue without imposing particularly onerous taxes on middle-class and working-class citizens. But this argument fails to recognize that, while state governments may be able to raise and spend money at will, they are bound by much tighter budgetary constraints than the federal government and cannot simply replace taxes with lottery games.
Another reason lotteries are controversial is that they can contribute to compulsive gambling behavior and magical thinking, which can be harmful to financial well-being and personal life goals. In addition, playing the lottery can be an expensive habit that consumes more than it pays out in prizes. And the results of the draw are a matter of pure chance, which can be emotionally distressing for players who don’t win.