Lottery Advertising
Highly-respected gambling researcher Robert Goodman has called lottery advertising “the pathology of hope” and state lotteries, because of their exemption from truth-in-advertising laws, fully exploit this pathology.
Most industries and companies are subject to truth-in-advertising laws enforced by the Federal Trade Commission. According to these laws, advertising must be truthful and non-deceptive, advertisers must have evidence to back up their claims, and advertisements cannot be unfair. Since 1974, the U.S. Congress has exempted state-run lotteries from these laws. Because of this, governments and lotteries have wide latitude in how they can promote their product, exaggerate chances of winning, and encourage more of our fellow citizens to lose their money instead of saving or investing. All federal laws relative to the lottery can be found in Title 18 of the U.S. Code, Sections 1301 to 1307. The final section, 1307, outlines the lottery’s exemption from truth-in-advertising laws.
These predatory and deceptive practices can be found in the media plans of the lotteries. Ohio’s Super Lotto media plan, for example, stated that lottery promotions should be timed to coincide with the receipt of Government benefits, payroll and Social Security payments.
To view examples of how lotteries have exploited the truth-in-advertising exemption, please view the Lottery Advertising Examples in our Video section and Lottery Business Practices in our Photos section.
Reading Between the Lines of Oregon’s Video Lottery Commercials
This excellent blog post from The Tax Foundation highlights how the state of Oregon, after passing a smoking ban in bars and restaurants to restrict a dangerous activity, launched an aggressive advertising campaign to promote the Lottery’s highly-addictive electronic gambling machines to make up for the anticipated loss of revenue caused by the smoking ban.
The Tax Foundation – Reading Between the Lines of Oregon’s Video Lottery Terminals
Is North Carolina Violating its Own Lottery Advertising Laws?
When North Carolina introduced the lottery in 2005, it put in a measure that officials thought would prevent it from exploiting people with gambling addiction. A law was passed forbidding the the agency to advertise the lottery in a way that would entice people to play.
However, the North Carolina lottery seems to be breaking this law.
What is North Carolina After? Bucks, bucks, bucks!
Oregon Cutting Vital Programs, But Still Spending Nearly $9 Million on Lottery Advertising
The Oregonian reports that the state of Oregon is “cutting programs that serve poor families, threatening to close highway rest stops and laying off teachers.” But, this has not stopped the Oregon Lottery from spending $8.9 million on messaging during the 2011 fiscal year in its effort to encourage more Oregonians to gamble.
Whatever Oregon’s Trying to Communicate, It’s Costing You Millions