This in-depth report from the Federal Reserve Bank of St. Louis studied the relationship between income and lottery revenue and found that a large portion of lottery profits come from people who receive some financial subsidy from the government, suggesting the lottery profits from those with the least disposable income.
Lowering the Standard of Living for Ordinary Citizens
Atlantic City’s severe hardships continue despite plunging millions into casinos
Atlantic City is known for its many casinos and for being, essentially, the Las Vegas of the east coast. The many casinos were brought into Atlantic City under the pretense that they would help the city out of its financial hole. However, even decades after Atlantic City legalized casino gambling and spent millions on the casino industry, according to this article by the USA Today, the city continues to struggle.
Casinos are no help for Detroit’s financial ruin
This in-depth report by the Detroit Free Press chronicles the downfall of one of America’s great cities and explores the many reasons behind the city’s financial collapse. Though originally heralded as a possible savior for the city, casino gambling became just another factor in the downfall of Detroit. Gambling, and the tax increases that often went along with it, were one of the factors the article identifies as contributing to Detroit’s decline.
Gambling winnings, even when offset by losses, cost seniors more than you would think
This article, from The Wall Street Journal‘s “Market Watch”, shows how gambling winnings can cost seniors dearly when tax day comes. Even if they are balanced out by losses of the same amount, certain tax rates can skyrocket, leaving seniors to pay extra. Using a real example, the author shows just how much gambling can cost.
Illinois Lottery gains overwhelming majority of revenue from poorer areas
This article by The Chicago Tribune outlines how poorer neighborhoods are bringing in the stark majority of sales, showing that the most disadvantaged in the Chicago community are often the most exploited by the lottery.
2013 IL Lottery – poorer neighborhoods bring in most revenue
Survey of literature on the economics of lotteries
Below is a survey and summary of the many existing works regarding the economic impacts of lotteries in the US. It underscores the need for more unbiased research in this area, as well as giving an informative look into the how lotteries impact the economics of towns, states, and the country as a whole.
2012 The Economics of Lotteries- A Survey of the Literature 2-20-2012
Lotteries hurt winners, losers, and their communities
Lotteries hurt those who win, those who lose, and their surrounding communities, as explained in this article from ThinkProgress.org. Those who win face problems such as drugs, bankruptcy, and familial tensions, those who lose deal with crippling poverty, and their surrounding areas tend to spend less and less on education.
18 ways that state lotteries prey on the poor
Business Insider spotlights 18 ways in which lotteries prey upon America’s least favored.
10 reasons why lotteries are bad for the economy
This article from Salon.com outlines the ten strongest reasons why state lotteries hurt the economy and the poor. It explains how lotteries not only hurt those who play, but also hurt local business and help foster crime.
Lottery tickets may soon be purchased with credit cards
A recent rise in online gambling has caused some states to allow consumers to purchase lottery tickets online. However, as this article explains, this allows problem gamblers to rack up huge amounts of debt more quickly and more easily.