Research Report
Don’t Bet On It: A State Lottery Would Not Be an Alternative to Taxes
posted March 9, 2005 by John Hood
Supporters of a proposed government lottery argue that it would be a welcome alternative to raising state taxes to fund education. 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 on it.