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Is $100 Billion a Year in Lottery Money Well Spent?

As the US spends upward of $100 billion a year on lottery tickets, it’s worth asking whether that’s money well spent. The answer may depend on how much of it goes to help people instead of merely being funneled into the coffers of state governments.

Lotteries are a form of gambling in which numbers or symbols are drawn at random to determine winning tickets and prizes. This type of gaming has been around for centuries. It was first used in colonial America to finance public and private ventures, including roads, canals, churches, colleges, and fortifications.

When it comes to state-sponsored lotteries, debate and criticism tend to focus on two issues: compulsive gambling and alleged regressive impact on lower-income households. While both are important, the underlying dynamic is a bit more complicated than either of these alone.

Often, the only reason anyone buys a ticket is because they’re hoping to win. This hope is a long shot—relatively speaking, the odds of winning are low. But it’s a shot that some players are willing to take.

A large percentage of lottery players—particularly those who play daily numbers games and scratch tickets—are from middle-income neighborhoods. Moreover, they are disproportionately male and African-American. Those factors are likely to explain why so many of these players have little to show for their efforts. It’s no wonder that they continue to purchase these tickets. However, it’s also worth noting that this player base does not necessarily reflect the larger American population.