Saturday, November 22, 2014

A scathing indictment of US lotteries

Like most enterprises involving a lot of $, the lottery has been pretty crooked in the US from the start. And it doesn't really make sense for the state to prohibit sports betting and other gaming, while it holds a monopoly on a $68B business that contributes only 1% to education (with untold billions in social costs).

Lastly, several states (CA, IL, etc.) have or are considering (NJ, others) selling stakes in their lotteries to private investors, in order to shore up their shaky budgets. Like many public asset sales, this usually works out to the detriment of the public. Investors want ROI, and will find new, unhealthy ways to increase the number of players/losers (an idea floating around is online sales).

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