The lottery has long been a favorite of many people, providing them with the chance to fantasize about a huge fortune at a price that is only a couple of dollars. But it is not without its critics. Studies show that those with the lowest incomes play a disproportionately large percentage of Lotto games, and some argue that it’s essentially a disguised tax on poorer residents.
Despite these criticisms, the lottery has proven to be remarkably durable. The first modern state lotteries began in 1964, and they have since been adopted by 37 states. They have also been embraced by many different specific constituencies—convenience store owners (who make a significant profit from lottery sales); lottery suppliers, whose leaders frequently contribute to state political campaigns; teachers (in states where lottery revenues are earmarked for education), and the like.
The most common argument in favor of a lottery is that it provides a way for a state to expand its public services without imposing especially onerous taxes on the general population. This appeal is especially effective in times of financial stress, but it can also be successful when a state’s fiscal health is strong. Indeed, Clotfelter and Cook find that the objective fiscal conditions of a state do not appear to have much influence on whether or when it adopts a lottery.