Problems With State Lottery Programs

The practice of determining fates and distributing property by lottery dates back to ancient times. The Old Testament offers a number of examples, and Roman emperors used lotteries at their Saturnalian feasts. The drawing of lots to determine a spouse is mentioned in the Song of Songs (2nd millennium BC). In modern history, state lotteries typically follow similar paths: the government legislates a monopoly for itself; creates a public corporation or agency to run it (as opposed to licensing a private firm in return for a cut of profits); begins with a modest set of relatively simple games and, under constant pressure to maintain or grow revenues, slowly enlarges the size and complexity of its offering.

Despite a long record of success and broad public support, there are a few significant problems with state lotteries. For one, their reliance on revenue growth — which tends to peak quickly and then begin to decline — has made them vulnerable to the kinds of pressures that prompted many states to introduce new forms of gambling in the first place.

Another issue is the tendency of state officials to make policy in piecemeal fashion. This fragmented approach, which results in little overall oversight, is exacerbated by the fact that many lottery officials are also members of the state legislature and executive branches, which means they face frequent conflicts of interest. The resulting muddle of policies can cause problems for the lottery itself, as well as the state government and its taxpayers.

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