Through the lottery, we are taxing those least able to pay and encouraging their delusions in order to reduce the tax rate for the rest of us. It's not a pretty picture. If the lottery were an overt rather than a hidden tax, its blatant inequity would prevent its enactment by even the most conservative legislature. Since states keep almost half of lottery receipts, the games offer the worst deal of almost any legal bet. By contrast, slot machines and casino table games pay out 80 to 90 percent to customers.
Most states promote their lottery games aggressively.
They provide little or no information on the payout rate, and they don't offer much help to pathological or problem gamblers. Thirty-five states use the Internet to promote their lottery games, but only a third of the sites offer payout information. Partly because people like the instant action. It also helps that lottery tickets are available in so many locations. The hyped media coverage of big jackpots and winners builds lottery lust.