In the past, when lotteries were seen as a way for states to increase revenue without raising taxes, the message was that it was okay to gamble because the money went back to a specific public good. That’s a nice thought, but it’s been shown over time that the public goods argument is not as powerful as it seems.
The fact is that the lottery, like any government-sponsored activity, has a number of inherent problems. It grows and changes over time in ways that legislators and executive officials can do little to control, so it is a classic case of fragmented public policy. Few, if any, state governments have an overarching gambling policy or even a lottery policy that guides their decisions and actions. Instead, their decisions are made piecemeal and incrementally with very limited oversight, and they tend to be driven by the continuing evolution of the industry itself.
The first records of lotteries are found in the Low Countries in the 15th century, where towns held them to raise money for town fortifications and to help the poor. They became widely popular in the immediate post-World War II period, when they were promoted as a way for states to expand their array of services without having to raise their already-high tax rates. This arrangement also allowed states to avoid the stigma attached to imposing sin taxes, as many would be hesitant to accept such taxes on vices such as alcohol or tobacco.
