In this week’s Acton Commentary, I examine the most recent buzz-worthy trend in the lottery industry: privatization.
While most critics of these moves have pointed to the foolhardiness of selling off a long-term income stream for a lump sum jackpot, I argue that privatization by itself does nothing to address the underlying problems afflicting the lottery business. I conclude, “A government-run monopoly would merely be replaced by a government-enforced monopoly.”
And as I’ve claimed previously, government reliance on lotteries as a morally praiseworthy generator of income is illusory. UPDATE (HT: Mere Comments): Here’s a bit from the abstract from a recent article examining lottery trends from 1976-1996: “One of the most important policy-oriented determinants of income inequality is the lottery and a significant portion of the increase in income inequality over our two-decade time period is attributable to the increasing prevalence and popularity of state lotteries” (Elizabeth A. Freund and Irwin L. Morris, “The Lottery and Income Inequality in the States,” Social Science Quarterly 86 [December 2005 Supplement]: 996-1012).
The newest incarnation of the Michigan Lottery’s attempt to sell the industry as contributing to the common good describes the lottery as a thread running through all sectors of society, connecting everyone in a single bond of community. Is it really true that under a state-run lottery system that “we all win,” or all we all simply trapped in the same web?
Earlier this year the New York Post reported that the expansion of legalized gambling is having a deleterious effect on the ability of non-profits to raise funds through gambling fundraising events (HT: Don’t Tell the Donor).
And now there are some plans in the works to expand lotteries to a whole new level. The UK Telegraph reports that within five years a multi-million dollar worldwide lottery could be put in place.
I actually am quite (pleasantly) surprised that some enterprising young congressperson hasn’t yet been successful in putting forward the idea of a national lottery. Surely the Commerce Clause could be invoked to regulate and nationalize the regional interstate lottery games that are currently underway. The talk about something like No Child Left Behind being an unfunded mandate could be cut off in one fell swoop.
Read the entirety of this week’s commentary here.