Lottery Addiction
Almost all states now have lotteries, which are publicly-funded games in which people have the chance to win big prizes. They can be a fun pastime for many, but some people are addicted and may spend more money on tickets than they actually win in prize money. Lottery can also cause problems for families and friends, especially when a person’s addiction is caused by financial instability or stress.
Historically, state lotteries have been popular sources of revenue. In the 17th century, they were common in the Netherlands and were hailed as a painless form of taxation. In colonial America, they were used to fund a variety of public works projects, including paving streets and constructing wharves. Benjamin Franklin even sponsored a lottery to raise funds for cannons to defend Philadelphia against the British.
When a state first introduces a lottery, it typically legislates a monopoly for itself and establishes a state agency or public corporation to run it (as opposed to licensing private firms in return for a portion of profits). Initially, the lottery has a very limited number of games and is marketed with the claim that winning a large prize will create jobs and stimulate economic growth.
Lottery revenues typically increase dramatically after a lottery’s introduction, then level off and begin to decline, prompting the introducing of new games in an effort to maintain or increase revenue. Critics allege that the proliferation of lottery games promotes addictive gambling behavior, acts as a major regressive tax on lower-income groups, and leads to other abuses.