Losing the Lottery

by FRANK SCOBLETE

Frank Scoblete is the #1 best-selling gaming author in America. His books, tips and more can be found at bookstores, on Amazon and his web-site at FrankScoblete.com.

THE HOUSE EDGE ON STATE-SPONSORED LOTTERIES CAN RANGE BETWEEN 35 AND 50 PERCENT.

FOR MORE FREE TIPS, VISIT GAMINGANDDESTINATIONS.COM

LOSING THE LOTTERY: The Government and Gambling

I live in New York and if you go into any stationery store, many liquor stores, gas stations, and small grocery and convenience stores you invariably find state sponsored gambling in the form of the lottery and multiple scratch-off tickets ranging from $1 to $10 per ticket. Across the country, many people know about Powerball and Mega Millions and tens of millions of people play these across-the-states games.

In New York the lottery was put in place to raise more money for education. The truth is the money raised by the lottery goes to education but the money that would have gone to education from taxation of the citizens now goes elsewhere. The state gave money through the lottery and took money away through budgeting. The result? A waste of people’s hard earned money.

Of course, all states that have state-sponsored gambling profess altruistic reasons for bringing in such games. In point of fact one could make several good arguments, both economic and moral, as to why the state should stay out of the gambling business. Here are some:

The house edges on the state-sponsored lotteries are far worse than the worst bets in the casinos – with edges between 35 and 50 percent. Megabucks and other progressive jackpots on slot machines come in with about a 15 percent house edge. Gamblers are getting the severe short-end of the stick when they play the statesponsored games.

Of course, if you play a dollar or five dollars a week in the big lotteries, you are enjoying the dream aspect of state lotteries without much risk to your economic vitality. You plunk your money down and fantasize about what you’ll do if you win those mega millions. Sadly, there are people who spend way too much money on these state-run games. In my local stationery store, I see the same people day after day buying countless tickets hoping to hit the jackpot. Few ever do. They are not supremely wealthy people with tons of money to throw away – many are older folks who might be looking at a lottery win as a form of retirement income.

These state-run games have a much stronger impact on poorer people who wager a much greater percentage of their weekly income on the get-rich-quick dream hoping that hitting their dream will turn their lives around. This disproportionate impact on the poorer among us does not bother me as a matter of personal morality, since I believe people (yes, even poor people) have the right to do what they want with their money, but it does bother me that the state (meaning my neighbors and me) benefit from the government’s sticking it to the little guy. I don’t want to be a partner in this. Yes, if a private business such as a casino does the sticking, as happens in large house-edge games, I am not a partner in this, although the stockholders of casino companies are. Still that is all private business and none of my business.

The state also doesn’t seem to be able to run most enterprises properly considering the waste, pork, poor management, criminality and endless bureaucratic logjams that develop. I think we should refrain that old saying about teachers and make it, “Those who can do, and those who can’t will run government enterprises!”

The fact that our tax money has been abominably spent on frivolities for decades is one of the reasons why the governments of various states have hungered for gambling revenue. The politicians figure, correctly it seems, that while working people bridle at more taxes, most of them don’t care if the government raises money by promulgating rotten gambling games.

While I enjoy casinos and casino games, I am completely opposed to the government being in the gambling business. If the states are looking for more revenue, then tax the people more – if they dare. The fact is that so much government spending is geared to making the citizenry rely on government services and funds. Just about all campaigns are campaigns of promise. “I promise to spend other people’s money so you can have more services!” shouts one politician. His opponent shouts back, “No, I will spend more of other people’s money and give you even more services.”

The bottom line for me is this: If the citizens want to gamble, let them go to the casinos. If the government wants more money, let them come out into the open and tax us more (God forbid!), but don’t engage in silly and expensive lottery games that make us all partners in something I don’t want to be partners in.