Lottery is a gov scam just to get money from you?

Answer 1

Government lotteries are a scam on two levels.

1. Typically they are sold to the citizens on the basis of "We'll use this money for funding schools" or some such hard to argue with project. But then for every lottery dollar that goes to the schools or other good project, a tax dollar that formerly went there will be withdrawn. Thus the schools or other worthy projects are no better off financially, and a bit worse off spiritually, depending on your beliefs.

2. While they are technically offering a chance at money, they neglect truth in advertising laws such as would apply to other legal vices like cigarettes and alcohol. In other words, they fail to warn that the vast majority of lottery players will never win, and that worse, the vast majority of lottery "winners" are not only not happier, but nearly always much sadder.

Proof of this can be seen not only in numerous books and articles wrote about it, but in the fact that with all the millions the state lotteries spend on advertising, they NEVER show a follow up on how a "winner" is doing one year later. Let alone five or ten years later.

This is because an average "winner" is quickly alienated from family and friends, generally gets in way over his head, ends up selling his annuity for pennies on the dollar (except in states where you can take a lump sum), and is often times bankrupt within five years, without even having his or her old job any more.

Now, frankly, people being silly or inexperienced with money is not technically the state's fault. But then again, people being silly with ciggs and booze isn't the fault of cigarette and alcohol providers either, is it? But while those companies must warn of the danger, you'll not see any such warnings on a lottery ticket.

The following should be on every ticket:

"WARNING: You most likely will never win back the money you invest in these tickets, let alone get a big payout. And if you do, you'll most likely be bankrupt, jobless and alone within a year or so after winning."

"WARNING: If you invested a dollar a day in a regular savings account for twenty years, you'd get a return - after taxes - of two dollars for every one invested! No lottery ticket offered will consistently pay out double your investment!"