A lottery is a game in which numbers are drawn to determine the winner. Its origins are obscure but the casting of lots for decisions or determining fates is an ancient practice. It was common in the Roman Empire—Nero was a fan—and is attested to in the Bible, where it was used for everything from distributing prizes to party guests at the Saturnalia to deciding who would keep Jesus’ garments after his Crucifixion. In modern times, state lotteries are often popular and draw huge jackpots, but the odds of winning a prize are very small.
The author’s argument in this article is that the popularity of state lotteries in the late-twentieth century parallels a decline in American economic security. During the nineteen-sixties and seventies, many Americans faced financial crisis as their savings dwindled, inflation rose, social safety net benefits eroded, and health care costs soared. For states with generous public spending, it became impossible to balance the budget without raising taxes or cutting programs that voters viewed as essential.
During this period, the American lottery became a common source of funding for government activities. It was a way to raise money for schools, roads, and other projects, while not imposing direct tax burdens. Its popularity grew, even though many Protestant churches opposed gambling. In fact, the first state-sponsored lottery was established in Massachusetts in 1745, during a time when dice and card games were banned in private homes. By the late 1960s, the lottery had spread to all 13 colonies, and it had become a popular fixture in New England, where it was promoted by such luminaries as Thomas Jefferson (who compared it to farming) and Alexander Hamilton (who understood that “everybody would rather have a small chance of winning a great deal than a large probability of losing a little”).
But the lottery’s popularity was even greater in other states. New Hampshire began the modern era of state-run lotteries in 1964, and its success inspired a dozen other states to introduce their own in the next few years, mostly in the Northeast and Rust Belt.
The growth of the lottery was fueled by the state governments’ desperate need to raise money for a wide range of projects, and by its appeal as a “painless” alternative to taxes. State legislators and governors promoted it by arguing that lottery revenues could be spent in ways the public favored, such as education, social services, and infrastructure. Lotteries also attracted broad support among the general public, as well as from convenience store owners (the main vendors for tickets), suppliers of equipment and materials (heavy contributions to state political campaigns are frequently reported), and teachers (when revenues are earmarked for their benefit).
The development of the lottery illustrates a fundamental point about the nature of public policy in America. Most decisions are made piecemeal and incrementally, with authority fragmented between legislative and executive branches and further divided within each. Moreover, once policies are implemented, they are difficult to change. This dynamic is especially true for lottery systems, in which the initial policy decisions are quickly overtaken by the ongoing evolution of the industry.