State Conducted Lotteries: History, Problems, and Promises

Lotteries have played an important role in American finance through much of this Nation's history. This paper begins with an account of the abuses that led to the prohibition of the privately run lottery during the nineteenth century. It then goes on to analyze the promise and performance of the state run lotteries that have been created during the last decade. The paper argues that the lotteries have failed to fulfill the promises of their proponents, either in raising revenue or in fighting organized crime, and that they constitute a regressive and inefficient form of taxation. It also argues that the promotion of gambling serves to tarnish the image of state government.