In 1973, seven states had state-sponsored lotteries. The state is uniquely important to gambling in general, not only because government has legitimized it, but also because gambling is dependent upon government permission to be in business at all. And despite the spread of legalized gambling, in most parts of the country such permission is still restricted. It is no coincidence that the expansion of gambling has paralleled the spread of antigovernment and antitax political rhetoric. The increasing number of governors and legislators who make promises to hold the line or roll back taxes do not want to face the fallout that comes from cutting programs.
Most public officials extol the happy consequences of more gambling in their jurisdictions.
One place more money is being spent, however, is on gambling referenda and political campaigns. Lotteries are perhaps the hardest form of gambling to justify in terms of their costs and benefits. Lotteries prey on the poor and the undereducated. Heavy buyers include residents of low-income neighborhoods and those with limited education. 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.