The Ugly Underbelly of the Lottery

Whether it’s a lottery for units in a subsidized housing development or kindergarten placements at a prestigious public school, governments frequently hold lotteries to allocate goods and services. Some are gambling-based, such as those that dish out cash prizes to paying participants. Others are more like real-world auctions, such as those that determine who gets to work for a government agency or how much rent a person will pay in an affordable housing complex. In either case, these lotteries essentially amount to an exercise in economic redistribution.

It’s hard to believe, but the lottery has an ugly underbelly. It’s a form of social control that, in an age of inequality and limited upward mobility, provides a false sense of opportunity to those who can afford the risk. It’s also a way to avoid more serious forms of taxation. It’s no wonder that, even when the odds are staggeringly long, millions of people play.

The modern state lottery evolved from a series of private lotteries that were popular in Europe. Benjamin Franklin held a lottery during the American Revolution to raise funds for cannons, and Thomas Jefferson tried holding a private lottery in 1826 to pay off his crushing debts. Both were unsuccessful. The first modern state-sponsored lottery was started in 1964, and since then, more than 30 states have established lotteries to generate revenue for a variety of purposes.

Once the lottery is established, it tends to become self-perpetuating. It develops extensive specific constituencies, such as convenience store operators; lottery suppliers (heavy contributions to state political campaigns are often reported); teachers (in states where lottery revenues are earmarked for education); and so on. It’s not uncommon for those constituencies to have a strong interest in the operation of the lottery and a great deal of power over its direction. As a result, state officials frequently have a hard time making decisions that might improve the lottery’s overall welfare.

Mathematicians and statisticians have made a career out of trying to understand the dynamics of the lottery. The late Stefan Mandel, for example, developed a mathematical formula to predict winning numbers. Although it can’t predict every combination, it can help improve a player’s odds by selecting the right numbers and buying a lot of tickets.

To maximize your chances of winning, play a smaller game with fewer participants. Also, try to select random numbers that are not close together. Avoid choosing numbers that have sentimental value, such as your birthday or lucky number, because other players may follow the same strategy. Finally, consider pooling money with others to purchase a larger number of tickets. In this way, you can increase your odds by combining the numbers that appear most frequently on each ticket. You’ll want to pay particular attention to the “singleton” numbers—the ones that only appear once on a ticket. They will indicate a winning card 60-90% of the time.