Americans spend more than $80 Billion a year on lottery tickets, a big chunk of the average family’s income. This is money that could be used to build an emergency fund, pay off credit card debt, or even save for a down payment on a home. Instead, people are wasting it on a game with no chance of winning. It’s no wonder that those who win are bankrupt within a few years. Lotteries are a form of hidden tax and should be abolished.
The word lottery is derived from the Middle Dutch term lotgene, meaning “action of drawing lots.” Historically, state-sponsored lotteries have been an important source of revenue for public projects. They are also popular among voters because they offer a way for government to raise funds without raising taxes.
During the Revolutionary War, Congress voted to use lotteries to support the Continental Army. In addition to supporting the military, lottery proceeds helped fund several American colleges including Harvard, Dartmouth, Yale, King’s College (now Columbia), and William & Mary.
In general, lottery prizes are set at a predetermined value after expenses like profits for the promoter and marketing costs are deducted from the total pool of money. In many lotteries, a large prize is offered along with smaller prizes. The distribution of prizes is a key issue in the debate over whether lottery games are fair. For example, if all the prizes are small, there is little incentive for players to play. A prize structure that offers larger prizes can attract more players and increase the chance of a jackpot winner.