The official lottery is a government-run gambling game that provides money to the state in exchange for a small chance of winning big. In some states, there are several lotteries run by different agencies; in others, one large company oversees them all. The games typically offer a variety of different games, including Scratch-Offs, Draw Games, and Fast Play tickets; current jackpots; and keno drawings. There are also some games that combine multiple types of lotteries into a single product, such as Powerball and Mega Millions.
The American lottery emerged from a nation that was already short on cash, Cohen says. A series of events, including the Revolutionary War, Civil War, and Depression left America in debt and “defined politically by its aversion to taxation.” State governments turned to the lottery as an alternative revenue source for public works, and in many cases, schools.
But in the era of budgetary crises, pro-lottery advocates ran into trouble. While lottery supporters argued that the funds could float an entire state’s budget, this strategy did not go over well with anti-tax voters. So, lottery advocates began to narrow their pitch and focus on a specific line item, invariably a popular, nonpartisan service that would please voters—education, elder care, or parks, for example. This approach allowed them to frame the lottery as a silver bullet that wouldn’t inflame anti-tax sentiments and, they believed, make state governments look good.
With the advent of multi-state games, such as Powerball and Mega Millions, lotteries became more widespread in the United States. Matheson notes that as soon as a state legalized a lottery, other states usually followed suit. “There was a sort of geographic pattern, and it’s probably still true today,” he says.
Lottery advocates, like Scientific Games, hoped that the new products they were creating would attract enough players to offset their high advertising costs. But they were still not getting the numbers they needed. “At the end of the day, it takes a lot of people to play these games,” Cohen says. “And they need to be convinced that if they win, it’s a fair trade.”
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