Don’t Bet On It: A State Lottery Would Not Be an Alternative to Taxes

The John Locke Foundation writes:

Some policymakers and supporters of a proposed government lottery in North Carolina argue that it would be a welcome alternative to raising state taxes to fund education or other services. But there is no evidence to suggest that politicians in lottery states use the proceeds to reduce other taxes. They just allow state budgets to grow. Also, properly understood, a state-run lottery does increase taxes — it creates a government gambling monopoly and then levies a steep tax paid by those who buy lottery tickets and receive lottery revenues....