The lottery is a type of gambling that’s legal in 45 states plus Washington, D.C. and Puerto Rico. The money raised goes toward public services like schools, parks, pensions for city workers and veterans programs — or it gets deposited into the general fund. But it’s also a form of taxation, and there are plenty of pitfalls to be aware of.
Lottery advertising often focuses on two messages, says consumer psychologist Adam Ortman. One is that the purchase of a ticket is small, around the price of a cup of coffee. And that’s meant to minimize the perceived risk and magnify the potential reward. The other is that if you don’t play, you could miss out on the chance to improve your life. It’s a message that taps into the fear of missing out, or FOMO.
There’s also the message that someone has to win. But that’s not really true, either. Each drawing has independent probability that’s not affected by how many tickets are purchased or whether the numbers were played in a previous drawing. In fact, if you’re playing to improve your odds of winning, you’ll likely decrease them by buying more tickets.
In the immediate post-World War II period, state legislators saw lotteries as a way to expand public services without burdening middle and working class residents with additional taxes. The belief was that the lottery would allow states to provide more education, police and fire protection and veterans’ health programs while also cutting into the illegal gambling activities of the mob.
