The idea of casting lots to decide fates has a long history. But lotteries, which offer prize money for the purchase of tickets, are a much more recent development. They began in colonial America to finance public works projects and private ventures, including churches and colleges. George Washington sponsored one to build a road across the Blue Ridge Mountains.
Today’s state lotteries are typically run by a government agency that acts like a business, with the goal of increasing revenues and maximizing profits. To do so, advertising campaigns highlight the success of previous winners and tap into the aspirations of the audience. “These narratives reduce the risk of a minimal investment by magnifying the potential reward, creating an aspirational experience that appeals to people’s desire for a better life,” Ortman says.
When a lottery jackpot hits the billions, ticket sales spike and people are constantly reminded of the possibility that they will be the next big winner through TV commercials, radio spots, billboards, social media posts and online ads. When the jackpot reaches multiple zeros, the marketing becomes even more relentless.
The popularity of the lottery is often seen as a way for state governments to avoid raising taxes or cutting spending during tough economic times. But research has shown that the objective fiscal circumstances of a state don’t have a strong impact on whether or when a lottery is adopted. Once a lottery is established, however, it’s difficult to turn off the money flow. Revenues typically grow quickly after a lottery’s introduction, but eventually level off and begin to decline. This has prompted the constant introduction of new games to sustain or increase revenues.
