The Public Good and the Lottery

The casting of lots for decisions and fates has a long history in human culture, including several instances in the Bible. However, lotteries with ticket sales and prizes in the form of money are comparatively recent. The earliest known public lottery was a Roman event organized by Emperor Augustus for city repairs, and the first recorded lotteries to distribute prize money occurred in the Low Countries during the 15th century. These events raised funds for town fortifications and to help the poor.

State lotteries follow a similar path: the government legislates a monopoly; establishes a public agency or corporation to run it (as opposed to licensing private firms for a percentage of profits); begins with a limited number of simple games; and then, to maintain revenues and interest, progressively expands the offering with new games. While initial debate and criticism typically center on the general desirability of a lottery, as it grows the focus shifts to issues such as its impact on compulsive gamblers, regressive nature on lower-income groups, and other features of operation.

The main reason that state lotteries attract and retain broad popular support is the degree to which they are perceived as a means of promoting a particular public good, such as education. Lotteries are particularly effective at winning and retaining public approval during times of economic stress, when the prospect of tax increases or budget cuts threatens existing public programs. Moreover, the promotional messaging that portrays past winners and their aspirational lifestyles helps to make the lottery seem both attainable and life-changing.