Tag Archives: compulsive
Lottery Myths Exposed
Lottery Myths Exposed
There are many myths surrounding lotteries and most of them that you hear are just that-myths. Perhaps the most commonly heard lottery myth is that you have a greater chance of being struck by lightning than you have of winning the lottery. While this may be partially true for mega jackpot lotteries like Powerball and Mega Millions many lottery games with smaller payouts have surprisingly good odds in favor of the player. Every year there are thousands of lottery players who have won prizes of $10,000 or more.
Many moralistically inclined and the self righteous claim that lotteries are a ‘tax on the poor.’ To be profitable lotteries must target those able to afford lottery tickets. Most lottery players have disposable income which enables them to play various lottery games. Lottery players are a varied lot and many wealthy people routinely play lottery games. In Ohio a millionaire won the lottery not once but twice.
Many people also like to claim that lotteries are some sort of ‘stealth tax.’ Again this is pure unmitigated hogwash! Taxes are compulsory and if you don’t pay you go to jail. No one has ever been imprisoned for failing to purchase a lottery ticket. Playing the lottery is the individual’s choice.
Lotteries cause compulsive gambling. This is probably one of the most ridiculous claims made against lotteries. This attitude about lotteries is rare in Europe but for some reason persists in the US. In the first place compulsive gamblers require constant action and lotteries do not fill that need for those with gambling problems. Lotteries do not cause gambling addiction and studies have shown that gambling addiction is not fed by lotteries. Most compulsive gamblers favor casino games and some online gambling. The online gaming industry has gone to great lengths to identify problem gamblers and many land based casinos bar problem gamblers.
Another big lottery myth is that only winners get any benefit from lotteries and winners are few. Most state lotteries benefit and fund a wide variety of government services. Most states use the greater part of lottery generated revenues for education including scholarships for economically disadvantaged students who would not be able to afford college or professional schools without financial help. Lottery generated revenues have also been used to fund infrastructure projects and programs for the disabled, blind and senior citizens.
There are probably other lottery myths but these are the most commonly heard. If you are a lottery player and someone tries to tell you these myths are true you will have some ready answers!
All About Lottery Advertising and Economics
All About Lottery Advertising and Economics
How Much Do Lotteries Advertise?
In 1996 North American lotteries spend $400 million ($US) on advertising and received $34 billion in sales. Advertising expenditures accounted for 1.17 percent of total revenue. By contrast, in 1996 restaurant owners spent 3.2 percent of their revenues on advertising, beverage manufacturers spent 7.5 percent, cosmetics companies spent 8.8 percent, and candy makers spent 12.7 percent. Advertising accounts for less of the cost of a lottery ticket than virtually any other consumer product.
Why Isn’t Lottery Advertising Regulated By the Federal Trade Commission?
Lotteries are not subject to FTC regulation because they are operated by state governments, and the federal government cannot regulate state government programs. Unlike other products, however, lottery advertising is subject to review and restriction by governors and state and provincial legislators.
Who Regulates Lottery Advertising?
Lottery advertising is regulated by the states and provinces in which lotteries operate. Many have adopted formal laws, standards, or guidelines about what is and is not appropriate for advertising in their jurisdiction, and most states have elaborate review procedures to prevent potentially offensive advertising from appearing. In addition, the North American Association of State and Provincial Lotteries have established advertising guidelines to provide direction to member lotteries in developing their advertising standards. These guidelines are extensive and incorporate aspects related to compulsive gambling, beneficiary funding, and more.
Does Lottery Advertising Create Compulsive Gamblers?
Compulsive or pathological gambling arises as a result of some combination of biological and psychological factors predisposing an individual to addictive behavior. A person does not become a compulsive gambler simply because of lottery advertisement, just like a person does not become an alcoholic because he sees an advertisement for alcohol.
Do Lotteries Contribute to the Economy?
Lottery revenues contribute to the economy in a number of ways. Certainly that portion of lottery sales which return as prizes is simple redistribution, but revenues are also distributed to over 240,000 retail outlets as commissions, to the companies which supply lotteries such as ticket printers, data processing companies, advertising agencies, and delivery services, and most importantly, for the provision of goods and services through the programs lotteries were created to support.
If You Don’t Win Have You Wasted Your Money?
Lotteries are perceived by players as a form of entertainment, like a sports event or going to the movies, not as a financial investment. Winning a prize is not the only benefit of playing the lottery – the lottery also offers entertainment and also funds many state programs. Those who play the powerball lottery, or the mega millions lottery, or any of the many forms of lottery games, play not only because they want to win, but also because it is fun!
This information was found at www.naspl.org (North American Association of State and Provincial Lotteries)
Buying Online Lottery Tickets
At the present time most US state lotteries do not allow players to buy online lottery tickets. Most lottery experts say that in the very near future many state lotteries will offer players online lottery tickets.