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Is the Lottery a Good Way for States to Raise Funds?

Posted on March 7, 2025 By adminsel
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The lottery is a form of gambling in which numbered tickets are sold and prizes are awarded to the holders based on the results of a random drawing. It is currently legal in 45 states and Washington, D.C., and is widely viewed as an effective source of state revenue. The money raised by lotteries can go toward a variety of public services, including education, parks and veterans’ health programs. It can also be deposited into a state’s general fund.

When lotteries first emerged in the United States, the immediate post-World War II era, they were seen as a way for states to increase their range of services without increasing taxes. The message was that if you bought a ticket, you weren’t wasting your money—you were doing your civic duty to help the state.

But the prevailing message now is that people just plain like to gamble, and it’s OK to play. Lottery ads feature narratives of prior winners and their newfound wealth, highlighting how ordinary lives can be improved with a single ticket. It’s a tempting, aspirational story that plays on the minds of many Americans, particularly those living in communities with limited social mobility.

The ubiquity of the lottery has led to its growing popularity, with some estimates that more than half of the adult population buys a ticket at least once in their lifetime. But it’s important to consider the bigger picture when assessing whether this is really an effective way for states to raise funds.

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