Is the Lottery a Public Good?

Those who play the lottery know that it’s random and there’s no way to predict the winning numbers. They also know that they have the option to choose a lump sum or an annuity payment. Lump sum payments allow the winner to get immediate cash and annuities guarantee larger total payouts over time. Which one to choose depends on the financial goals of the winner and the applicable rules of the particular lottery.

The casting of lots for decisions and determination of fate has a long history in human culture, but lotteries to distribute material goods are a much more recent invention. The first recorded public lotteries were held during the 15th century in the Low Countries to raise money for town fortifications and to help the poor.

Many people try to improve their chances of winning by picking numbers that are significant to them or that appear frequently in the past, such as children’s birthdays or ages. But this is a waste of money, according to Harvard statistician Mark Glickman. He says that picking numbers like these, or sequences such as 1-2-3-4-5-6, increases the chance that you will share the prize with someone else who picks those same numbers.

State lotteries are run as businesses with a primary function of generating revenues. That means they promote the games with advertising aimed at persuading people to spend their hard-earned dollars on them. And that raises the question of whether they are acting at cross-purposes with a state’s mission to provide a social safety net and help its citizens lead better lives.