Is the Lottery a Necessary Source of Revenue?


A lottery is a gambling game in which people buy numbered tickets. Some numbers are drawn, and the people who have the winning tickets win a prize. Lotteries can be very profitable for the government and licensed promoters. They have provided much of the financing for a variety of projects, including the building of the British Museum and the repair of bridges. In the American colonies, they helped finance roads, libraries, colleges, canals, churches, and even fortifications.

The earliest recorded lotteries to sell tickets for prizes in the form of money were in the Low Countries in the 15th century. Various towns held them to raise funds for town fortifications and to help the poor. Francis I of France organized a public lottery called the Loterie Royale in 1539.

In the US, a large percentage of states’ budgets is devoted to the lottery. Some state leaders claim that it’s a necessary source of revenue. But the truth is that it’s a regressive tax. People who earn less than a certain amount pay the same proportion of the total cost of the lottery as those who earn more.

Many state officials are reluctant to discuss the matter openly. But there are ways to question the lottery’s costs and benefits. The first step is to look at how much the lottery actually generates for a state and then compare it with the percentage of its overall budget that it uses for gambling. This will give you a sense of whether or not the lottery is justified as a necessary source of revenue.