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An Alabama Lottery:Theft By Consent
Founding Principles In Action
Executive Summary
Lotteries are the most popular form of gambling in America. As recently as 1963, lotterieswere banned in every state in America. Today, however, 38 states and the District of Columbiahave legalized state-run lotteries.Americans have spent more than $427 billion on lottery tickets—or about $375 everysecond—since their legalization in 1964. In 2001 alone, Americans wagered more than $38.9billion on lotteries—about $136 for every man, woman and child in the nation.Lotteries are also the biggest source of government revenue from gambling, generating about$11.8 billion for the states sponsoring them. In most states with lotteries, some or all of thisrevenue is earmarked for education.This lure of “revenue from nowhere” has caught the attention of Alabama politicians since1986. For the second time in four years, the citizens of Alabama are being told the best way toboost the quality of education in our state is by legalizing a state-sponsored lottery. The mostrecent proposal by Gov. Don Siegelman would establish a state lottery that he states couldgenerate $200 million in revenues for the state’s beleaguered Education Trust Fund.With the recurring threat of proration and the lure of lotteries and casino gambling acrossthree of our state lines, an Alabama lottery may seem to be a quick fix to our state’s financialwoes. Despite their popularity, though, lotteries are not the stable revenue source gamblingsupporters claim them to be, nor are they devoid of social and economic consequences.
An Alabama Lottery: Theft by Consent
examines the darker side of lotteries in other states, as wellas what might happen if Alabama were to legalize its own education lottery. This report shows:
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To realize $200 million for education, an Alabama lottery would have to sell $571 millionworth of tickets, or about $127 for every man, woman and child in the state.
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Legalizing a state lottery would create more than 16,000 new pathological gamblers, and costthe state more than $200 million in social and economic costs.
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The poor spend disproportionately more of their income on lottery tickets than middle- andupper-income families.
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Instead of attracting money from out of state, an Alabama lottery would cannibalize theexisting economy by consuming local dollars.
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States that legalize low-stakes forms of gambling such as lotteries often legalize “harder”forms of gambling in a matter of a few years.
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Seventy-five percent of all high school students have gambled, and more than 2.2 millionadolescents are already addicted to gambling.
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Five percent of all lottery players buy half of all lottery tickets.
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The fastest growing group of problem gamblers—in terms of those calling for help—issenior citizens, many of whom are being hooked on the lottery.
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Alabama residents buy only two percent of all lottery tickets from Florida and 4.5 percentfrom Georgia.
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II. The Lottery-Casino Connection for Theft by Consent Alabama Lottery
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| Upload Date: | 05/03/2009 |
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