The Dangers of Lottery Marketing
As the lottery industry continues to expand, states are increasingly relying on it as a source of revenue and in some cases are adopting lotteries for the first time. While the public may like the idea of winning a large jackpot, many experts are warning about the dangers of this type of gambling.
Aside from the inextricable human urge to gamble, there is a political rationale behind state lotteries that goes something like this: it allows the government to generate tax revenues without burdening residents with new taxes or raising existing ones. Lotteries have been a popular way to raise funds for a variety of public needs, and have often enjoyed broad public approval. Studies have shown that the level of public support for a lottery does not correlate with the state’s actual fiscal situation; rather, it is often related to the extent to which the proceeds from the lottery are seen as benefiting a particular “public good.”
It seems to be largely true that people who play the lottery do so for entertainment and for the chance of winning a big prize. However, there is also a significant element of social classism in lottery play, with those from lower income levels tending to play more heavily relative to their disposable incomes. Those from middle incomes also tend to play more heavily than their proportion of the population, but not nearly as much as those in the higher income brackets.
Regardless of the social class background of lottery players, there is one clear message that lottery marketers send: winning the lottery is a game of chance. While this may be a truth to an extent, the fact is that lottery marketing is about persuading people to spend money on tickets. This is an important point that should not be overlooked because it suggests that the promotion of the lottery is operating at cross purposes with the general welfare.
The earliest known lotteries were held in the Roman Empire as a form of entertainment at dinner parties. People would pay a fee to enter and the winners were given prizes that usually consisted of fancy items like dinnerware. The modern-day lottery evolved from this practice and is typically governed by the state’s legislature and run by a government agency or a publicly owned corporation. It starts with a modest number of relatively simple games and, under pressure to generate revenue, progressively expands its size and complexity.
In order to maximize profits, the lottery relies on advertising to attract players and sell tickets. To this end, it has adopted two primary messages: 1) that playing the lottery is a fun experience; and 2) that winning the lottery is a game of chance. Both of these messages obscure the regressive nature of the lottery, which is a form of gambling that disadvantages those from lower income groups.
The question remains: are these messages appropriate for a government to convey? The answer, of course, is that it depends on the state’s policy goals. Most states have no coherent “lottery policy,” and instead rely on piecemeal approaches to gambling regulation that rarely take into consideration the overall welfare of the population.
