Every day I read reports of how the jackpot for the Powerball lottery, one of the many lotteries run by states in the US, keeps increasing in size. Under the system, if a drawing does not produce a winner, the jackpot rolls over with the value of the new bets added to the old. Currently the prize is about 1.2 billion dollars.
In an interesting article, Kathryn Schulz discusses the history of how the lottery became a ubiquitous presence in American life.
How this came to be is the subject of an excellent new book, “For a Dollar and a Dream: State Lotteries in Modern America,” by the historian Jonathan D. Cohen. At the heart of Cohen’s book is a peculiar contradiction: on the one hand, the lottery is vastly less profitable than its proponents make it out to be, a deception that has come at the expense of public coffers and public services. On the other hand, it is so popular that it is both extremely lucrative for the private companies that make and sell tickets and financially crippling for its most dedicated players.