The Dark Underbelly of the Lottery

The lottery is big business. Americans spent $100 billion on tickets in 2021, and states promote the games as a way to raise revenue. But what is the real value of those dollars, and are they worth the trade-offs?

The word “lottery” is believed to have been coined in the Low Countries in the early 15th century, although records suggest they may have been around for much longer. Various towns held public lotteries to raise money for walls and town fortifications, as well as to help poor residents. The popularity of these games grew amid growing economic inequality and popular materialism asserting that anyone could get rich by spending a few dollars. It also grew in the context of anti-tax movements leading legislators to seek alternative ways to fund government services, and thus the lotteries were born.

Lottery works by offering a prize—typically a lump sum of cash—to the person who correctly picks winning numbers in a drawing. The prize amounts are typically far higher than the average income of a lottery player, making them appealing to those seeking quick wealth. The game has its critics, who point to its regressive impact on lower-income groups, but these criticisms both react to and drive the continuing evolution of the lottery industry.

There is an inextricable human impulse to gamble, and the lottery plays to that. But there is also a dark underbelly, dangling the possibility of instant riches in an era of rising inequality and limited social mobility. It’s a message that state lotteries consciously broadcast, with billboards urging people to spend a few bucks for a chance to become millionaires.