---

---

Social Policy

States Net About One-Third Of Lottery Ticket Sales

Despite the overwhelming odds against winning the lottery, people are standing in lines sometimes blocks long for the chance to plunk down a couple of bucks and maybe become multimillionaires overnight. Last year, according to La Fleur's World Lottery Almanac, Americans paid $34 billion for lottery tickets -- up from $16 billion in 1988. Of the $34 billion, prizes absorbed 54.5 percent, with marketing costs taking away 5.8 percent. That left $11.5 billion for state-financed causes like education and aid to the elderly. As a rule, economists report, states rarely use lottery proceeds to supplement existing budgets for programs such as education -- $1 in lottery funds for schools usually means a $1 reduction in general revenues going to education. Most of the criticism of state lotteries arises from moral concerns, such as whether governments should be enticing people -- often the poor -- to part with their money. Some critics suggest that states permit private lotteries and raise funds by licensing and taxing them. Source: Peter Passell, "Maybe the Lottery Raises a Lot of Revenue, but as an Investment, It's Chancier Than You May Think," New York Times, August 6, 1998.

---

Home |  Support Us |  All Issues |  Social Security |  NCPA |  Contact Us

Dallas Headquarters: 12770 Coit Rd., Suite 800 - Dallas, TX 75251-1339 - 972/386-6272 - Fax 972/386-0924
Washington Office: 601 Pennsylvania Ave. NW, Suite 900 South Building - Washington, DC 20004 - 202/220-3082 - Fax 202/220-3096
© 2001 NCPA