The Truth About Lottery Marketing
In America, people spend $80 billion per year on lottery tickets. It’s the most popular form of gambling, but the chances of winning are slim. And even if you do win, it can be dangerously addictive.
Lotteries are games of chance that award prizes to individuals based on a random draw of numbers. They have been used for centuries, from biblical times to modern-day politics and finance. The word comes from the Middle Dutch lotje, a contraction of the phrase “lotting,” meaning “drawing lots” (Oxford English Dictionary). Public lotteries began in Europe in the 15th century to raise funds for town fortifications and the poor.
The earliest records of lotteries are from the Low Countries, where citizens could buy tickets for a fixed price. The prize money was in the form of cash or goods. These early lotteries were sometimes called “stocks” or “stocks of goods.” The first state-sponsored lotteries were held in England and the American colonies in 1744, and were often promoted as ways to obtain “voluntary taxes.” Privately organized lotteries also played a role in financing both private and public works projects. The foundations of many colleges in the United States, including Harvard, Yale, Princeton, Dartmouth, Columbia, William and Mary, King’s College (now Columbia), and Union, were financed by lotteries.
State lotteries often tout their contributions to local economies, and the revenue they generate for their respective governments. However, the overall percentage of state revenues from these operations is relatively small. And a large percentage of lottery profits are lost by players. Moreover, there are some very serious issues with how lottery marketing is carried out.