Lottery Organizers and Players

The drawing of lots to determine property or other rights has a long record in human history (including several instances in the Bible). Increasingly, people have begun to use lotteries for material gain. Lottery organizers must devise a way to record the identities of those who stake money on the outcome, and they must establish rules governing the frequency and size of prizes. A percentage of the pool normally goes to cover costs of organizing and promoting the lottery, and the remainder is available for prize winners.

In the United States, state governments offer a wide variety of lotteries, but all share certain basic characteristics. Each has some means of recording the identity and amount of money bet, a governing body that oversees the lottery, and a mechanism for determining the winning ticket(s).

Lottery players contribute billions in tax receipts each year. They do so in spite of the fact that they know their odds of winning are incredibly low. They also know that their purchasing of lottery tickets erodes the resources they could otherwise save for other purposes, such as retirement or college tuition.

I have interviewed many lottery players, including those who play $50 or $100 a week. They defy the stereotypes we have of them. Yes, they have quote-unquote systems that are not based on statistical reasoning and they buy tickets in specific stores at certain times of the day. But they all understand that they are taking a chance on a longshot, and they do it with a clear head.