Lottery Marketing and Moral Arguments

In the early days of colonial America, lotteries were a popular way for towns and states to raise money for road construction, waterworks, schools, and other public works projects. They also helped fund the establishment of the Virginia Company, the first of the English colonies to be founded outside of Europe. Lotteries continued to play a role in financing the American Revolution and later in raising funds for such prestigious institutions as Harvard and Yale, as well as building roads across the mountains and seas of America.

Today, state governments run lotteries as a business enterprise whose objective is to maximize revenues through advertising and the sale of tickets. Despite the fact that the prizes in the lottery are entirely determined by chance, some people still play, often spending substantial amounts of money on tickets each week. Whether or not they actually win, many lottery players come away with the feeling that playing the lottery is one of the few things they can do to improve their chances for a better life.

To maximize profits, lottery marketing strategies focus on the idea that a lottery ticket is an affordable form of gambling. They often present odds that are misleadingly low; inflate the value of winnings (lottery jackpots are usually paid in annual installments over 20 years, with inflation dramatically eroding the amount); and emphasize the excitement and thrill of buying a ticket. Moreover, they tend to target the poor and working class, who are more likely to play, and they reinforce the message that playing the lottery is a civic duty, an opportunity to “pay it forward.”

Two popular moral arguments have been used to criticize lotteries. The first argues that state lotteries are a form of “regressive taxation,” because they place a higher burden on those who are less wealthy. This argument is particularly effective in times of economic stress, when voters are facing the prospect of higher taxes or cuts to social programs. But research shows that the popularity of state lotteries is not influenced by the actual fiscal condition of the state, and in fact, most lotteries are popular even when the state’s budgetary situation is sound.

The second moral argument relates to the fact that playing the lottery focuses a person on short-term gains rather than investing in long-term prosperity. This can lead to an unsustainable financial model that encourages individuals to spend more than they can afford, and on credit rather than saving. This, in turn, can lead to bankruptcy and other financial problems. It is important for citizens to learn the biblical truth that wealth comes from working hard, and not from winning the lottery. “Lazy hands make for poverty” (Proverbs 23:5), and God wants us to gain riches by our own efforts. “A faithful man shall eat richly” (Proverbs 28:20). If we are willing to work and earn our wealth honestly, it will last longer than a temporary windfall. This is the only way to truly ensure a prosperous future for ourselves and our descendants.