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Opposition to lotteries is generally based on religious or moral reasons. Some people consider all forms of gambling to be wrong, and state-sponsored lotteries may be particularly abhorrent to them. Such a message might be particularly troubling if it is directed toward lower-income people. In economics terminology, a tax that places a higher burden on lower-income groups than higher-income groups in terms of percentage of their income is called regressive.

Even though the lottery is not really a tax, many people consider it to be a form of voluntary taxation because the proceeds fund government programs.

The economist Philip J. The NGISC expresses serious concern about the heavy reliance of lotteries on less-educated, lower-income people. It also mentions that an unusually large number of lottery outlets are concentrated in poor neighborhoods. Joseph McCrary and Thomas J.

Results of a Statewide Survey , http: The ten zip codes with the highest lottery sales for the previous six fiscal years were all in Chicago. The zip code with the highest lottery sales in the state, , coincided with predominantly African-American and Latino low-income communities on the city's south side.

Samuel also finds that residents in poorer communities spent a larger portion of their income on lottery tickets than did people in more affluent neighborhoods. Gebeloff and DeHaven gathered data on lottery sales in New Jersey by zip code and compared that data to income and population data for each zip code from to The results clearly show that those who lived in poorer areas bought far more lottery tickets than those living in wealthy ones.

In addition, less wealthy neighborhoods had more lottery retailers per capita. The ratio of lottery retailers per 5, people was 4 to 1 in low-income areas, compared to roughly 1. Haisley, Mostafa, and Loewenstein back up these studies, finding that people who perceive themselves as poor are more likely to buy lottery tickets than other people. Poor people see the lottery as a way to improve their financial situation.

The researchers determine that poor people spending money on the lottery is a factor in their inability to improve their relative finances. Proceeds from the Georgia lottery fund only education programs. If these programs provide more benefits to the poor than to the wealthy, it could be argued that this compensates for the regressive nature of the state lottery. Cornwell and Mustard claim that counties with the highest incomes and white populations receive significantly more HOPE scholarships.

Joint Study Commission Report ,http: The Vinson Institute reports that lottery play was inversely related to education level. In other words, people with fewer years of education played the lottery more often than those with more years of education. It also finds that lottery spending per person was highest in counties where African-Americans made up a larger percentage of the population.

Regarding the HOPE scholarship program, the Vinson Institute indicates that white students received a disproportionately high amount of the funds, compared to African-American students. The Vinson Institute notes that this disproportionate relationship was true for every year examined, back to However, the institute states that the gap narrowed substantially over that time.

Analysis of Georgia's lottery-funded prekindergarten program provided completely different results. The Vinson Institute finds that the rate of enrollment in the prekindergarten program was higher in lower-income areas of the state than in affluent areas.

It concludes that this particular lottery program is more beneficial to poorer people, African-Americans, and those who regularly play the lottery than to other groups in the state. Bowden of Saint Leo University finds that minority and low-income students do not have proportionate access to higher education in lottery states.

Surveys show that lottery play is the most popular and widely practiced form of gambling in the United States. However, does the combination of easy and widespread access and general public acceptance mean that lottery players are more likely to develop serious gambling problems?

Dean Gerstein et al. At-risk gamblers are defined as those who gamble regularly and may be prone to a gambling problem. However, the researchers find that multivisit lottery patrons had the lowest prevalence of pathological and problem gambling among the gambling types examined. They note that lottery players who do have a problem may be less able to recognize it because lottery players tend to undercount their losses.

Lottery players generally lose small amounts at a time, even though these small amounts may eventually total a large amount. In other words, a casino gambler who loses thousands of dollars in a day might be more likely to admit having a gambling problem than a lottery player who loses the same amount over a longer period.

Sixty students were given the South Oaks Gambling Screen, which is used to determine the probability that a person has a gambling problem. All the students were shown sixteen lotto tickets, each marked with a different sequence of six numbers. The sequences were random e. The students were then asked to choose the twelve tickets they would most like to play in the lottery and to rank those tickets from best to worst. Random sequences were by far the most popular: The students were also asked to explain the reasoning behind their selections.

The presence of significant numbers e. However, those students who regularly played the lottery or participated in other gambling activities were more likely to display bias when choosing their favorite tickets. The probable pathological gamblers were found to have more illusions about control than all other participants.

As of August , only eight states did not have lotteries: Hawaii and Utah permit no types of gambling and seem unlikely to amend their constitutions. A lottery in Nevada is very unlikely because of the tremendous growth of casino gambling there. Alaskan politicians have shown minimal interest in a lottery.

Though many state lottery bills have been introduced in the Alabama and Mississippi legislatures, most of them died in committee and the rest were soundly defeated on the floor. For several years members of the Wyoming legislature have been pushing a bill to allow the sale of Powerball tickets. The latest bill was defeated in the Wyoming House of Representatives in February In Arkansas lottery supporters sponsored a petition drive in that enabled a proposed constitutional amendment that would allow a lottery benefiting education to appear on the ballot in the November 4, , general election.

However, individual states cannot increase jackpot sizes without either greatly increasing sales or decreasing the portion of lottery revenue going to public funds. The first option is difficult to achieve and the second is politically dangerous.

Jackpot fatigue has driven increasing membership in multistate lotteries, such as Mega Millions and Powerball. Even as they cope with jackpot fatigue, many lotteries also face pressure to increase the amount of profit going to government programs. Several states are considering decreasing their lottery payout to raise much needed funds.

Opponents argue that cutting prize payouts will reduce sales, thereby making it nearly impossible to increase state revenues. Cite this article Pick a style below, and copy the text for your bibliography. Retrieved December 29, from Encyclopedia.

During the last few decades, lottery tickets have become an increasingly popular form of legal gambling in the United States. One popular game is the instant win, or scratch off lottery which features tickets that have the winning or losing numbers concealed on the game card itself.

The winning numbers are typically hidden by a coating, which is removed by rubbing. By removing this coating, the owner of the ticket can instantly determine the ticket's winning status instead of waiting for a matching number to be drawn. Since the cash value of the ticket is determined at the time of printing, the tickets must be designed and manufactured with extraordinary security precautions to avoid ticket fraud. The design of instant lottery tickets varies from game to game.

To entice potential purchasers, games may be thematically linked to popular interests such as sporting events, television shows, or even other gambling games like poker card or horse racing. Some states have even allowed customers to participate in the design process. Winners were judged based on theme, style of play, graphics, and originality. Regardless of the design type, instant lottery tickets are designed to be played by scratching off a concealing coating to reveal numbers, letters, or symbols that will hopefully match the designated winning symbol located somewhere on the ticket.

These games are all designed with multiple security features to prevent tickets from being counterfeited or tampered with. There are several techniques used to breach game security, which must be taken into consideration during the design process. One method of defrauding the lottery is to decode the relationship between the serial number on the ticket and the ticket's lottery number.

Each ticket contains an individual serial number composed of a series of digits or alphanumeric characters. This number is used by the game operator to track the distribution of tickets from the operator to the selling agents and for accounting of sold and unsold tickets. It may also include information that shows the ticket is only valid for certain games or dates. These numbers are especially helpful in case tickets are lost or stolen and can be used to track tickets to make sure they are not inappropriately claimed.

By understanding the relationship between the serial number and the lottery number, one could try to locate lots or batches of tickets that are more likely to be winners.

Other methods to breach ticket security attempt to directly view the lottery number without scratching off the ticket covering. One way this is done is by candling, which involves shining a bright light on the ticket in an effort to read the lottery number through either the front or back covering. Another technique, known as delamination, involves separating the different layers of the ticket to make the numbers visible. This technique can even be used after the owner has uncovered a winning number and turned in the ticket for redemption.

In this scenario, individuals with access to winning tickets could separate the front layer of the ticket that contains the winning number and glue it onto a new back layer that has a different name and address for the winner.

Still another way of circumventing lottery security, called wicking, uses solvents e. The design features employed to prevent these security breaches vary from game to game. In general, these features involve the serial number and the concealing coating. One key to controlling game security is to select serial numbers, which do not reveal any information about the winning status of the ticket.

This is done by randomly encoding tickets with a series of computer-generated numbers or symbols. Each lottery game uses a specific algorithm, or mathematical process, to randomize the relationship between the serial and lottery numbers.

This prevents anyone from discovering the connection between the two numbers. When properly encoded, the serial number cannot be deciphered by the ticket purchaser but still provides useful information to the ticket agent. Printing matching, coded numbers on the front and back of each ticket can help ensure winning tickets have not been tampered with. The security features used to prevent candling, delamination, and wicking involve the coating used to conceal the lottery number.

A heavy foil coating can be used over the numbers to prevent light from passing through the ticket and illuminating the numbers. However, this foil is expensive to add and it does not prevent delamination.

A better way to prevent the numbers from being read through the coating is to use an opaque covering in conjunction with confusion patterns imprinted on the back and front of the ticket. These confusion patterns are random designs used to obscure the image when light is shined through the ticket. This method can also be used to prevent wicking by utilizing dyes in the coating which are responsive to solvents. If anyone attempts to dissolve the concealing coating, the ink bleeds and obscures the lottery numbers.

The basic materials required for ticket manufacture are the same as those employed for any similar ticket or card printing. The main component is paper stock of appropriate stiffness, but aluminum foil is also used as a component of some multilayer tickets. Other important raw materials include the suitable inks, adhesives to laminate multi-part tickets, and the scratch-off coating materials used to conceal the number.

These coatings are most often made using acrylic resins. Printing technology is continually evolving and this evolution is likely to lead to new methods for lottery ticket production. For example, improved encryption technology could result in the creation of more secure lottery numbers. Likewise, newly developed chemical methods of concealing lottery numbers could produce less expensive tickets than those currently used. Perhaps of more interest for the future are alternate ways in which games may be played.

One method under consideration by the lottery commission involves a video terminal instead of a paper ticket. It is conceivable that at some time in the future, an instant lottery game could even be played over the Internet on a personal computer. State-sanctioned lotteries have a long history as a way of raising "painless" revenue for "good" causes.

Most European countries France, Holland, England utilized lotteries to finance capital improvements, such as roads, harbors, and bridges. For the original European immigrants to the United States, lotteries were an established method of raising the funds to build the infrastructure a developing country needed. Hence lotteries often are seen by American legislators as the harmless form of gambling that can be harnessed for the common good.

The United States has experienced three waves of lottery activity. The first wave of gaming activity in North America began with the landing of the first European settlers but became much more widespread with the outbreak of the Revolutionary War.

A few of these lotteries were sponsored by colonies to help finance their armies, but most lotteries were operated by nonprofit institutions, such as colleges, local school systems, and hospitals, to finance building projects or needed capital improvements.

For example, both Yale and Harvard used lotteries to build dormitories. The primary reason for the failure of Harvard's lottery was that it had to compete with lotteries to support British troops fighting the French and Indian War.

It should also be noted that, during this wave of lottery activity, no colony ever operated its own lottery. Private operators conducted lotteries. An organization or a worthy project, such as the Erie Canal, received permission from state legislatures to operate a lottery to support its "worthy" cause. But these private operators often were less than honest in conducting lotteries.

One famous lottery scandal occurred in Washington, D. In Congress authorized a Grand National Lottery to pay for improvements to the city. Tickets were sold, and the drawing took place. But before anyone could collect winnings, the private agent that organized the lottery for the District fled town.

It was a sober reminder to local officials that authorizing lotteries could be potentially dangerous, and the movement to ban lotteries began. From to all but two states prohibited lottery activity due to various scandals that occurred in the s and s.

However, less than forty years later lotteries once again exploded onto the national scene. With the conclusion of the Civil War, the South had to find some method to finance the construction of roads, bridges, school buildings, and various other social capital projects to recover from war damage.

One way was to permit private operators to conduct lotteries to raise revenue for reconstruction. The primary difference between this period of lottery activity and the previous period was the scale of ticket sales. Whereas in the previous lottery boom, sales of tickets were confined to local regions, these southern lotteries took on a national scope and, ironically, were particularly popular in the North.

The most famous southern lottery, known as the Serpent, was conducted in Louisiana. In the late s almost 50 percent of all mail coming into New Orleans was connected with this lottery. As was the case with the first wave of lottery activity, controversy surrounding lotteries eventually led to a federal government ban. In the charter that authorized the running of the lottery in Louisiana was about to expire. Various state legislatures passed resolutions calling on Congress and President Benjamin Harrison to stop this lottery.

In late Congress passed the primary piece of legislation that crippled the Louisiana lottery by denying the operators the use of the federal mail. If customers could no longer mail in their requests for tickets, then the lottery's life would be short-lived. By the Louisiana lottery had vanished, and as the twentieth century dawned, gaming activity in the United States had ceased.

But like a phoenix lotteries were resurrected as governments searched for additional sources in the late twentieth century. In New Hampshire voters approved a lottery. The rationale used by proponents to justify its legalization was strictly economic.

Proceeds from the lottery were to fund education, thereby averting the enactment of either a sales or an income tax for New Hampshire. The lottery was an instant success, with 90 percent of the lottery tickets purchased by out-of-state residents. But this lesson was not lost on neighboring northeastern states, and in the next ten years every northeastern state approved a lottery.

However, the greatest growth of state lotteries occurred in the period between and By only three states Utah, Hawaii, and Tennessee did not have some form of legalized gaming. Lotteries and associated forms of "gaming" had gained a social acceptance that had not occurred in previous waves of lottery activity. This third wave of lottery activity was quite different from those that preceded it.

First, the breadth or the widespread use of gambling as a source of revenue for state governments was greater. Thirty-eight states plus the District of Columbia sponsored a lottery by the twenty-first century.

Second, the depth of gambling taking place was unprecedented. No longer was lottery play confined to a monthly or even a weekly drawing. Most states offered three types of lottery games. First was a daily number game that involved selecting a three-or four-digit number for a fixed-amount prize.

The second type of game fits the general rubric of "lotto. The final lottery innovation was the "instant" or scratch tickets, in which the players know immediately if they have won. The odds and the sizes of the prizes for these games varied greatly. Previously the actual operation of the lottery itself was given to private brokers.

In the third wave the state itself became the operator and sole beneficiary of lotteries. While some states, such as Georgia, Nebraska, West Virginia, Maine, and Texas, have permitted private concerns, such as Scientific Games and G-Tech, to operate the instant game portion of their lotteries, the vast majority of lottery operations were conducted by the state at the beginning of the twenty-first century.

The final difference deals with the "good" causes lottery proceeds are used to support. In the two previous waves, the good causes were onetime events, and lottery proceeds supported building canals, waterworks, bridges, and highways. Once the good cause was complete, the lottery ceased.

While the state needed the lottery to finance these projects, it did not depend on lottery proceeds to fund daily services, By the twenty-first century many states, such as California, Illinois, Florida, and New Jersey, used lottery proceeds to fund education.

In other states lottery proceeds have funded Medicare Pennsylvania , police and fire departments in local communities Massachusetts , and a host of other day-to-day operations of government. State lotteries are no longer one-shot affairs. They must provide the sponsoring state with a consistent source of revenue to fund various good causes in order to justify their approval.

Lotteries are most frequently government-sponsored alternatives to primarily illegal numbers games whereby the participants win cash prizes if they match a series of numbers or symbols.

In the eighteenth and nineteenth centuries numerous lotteries raised very significant revenues to build roads, canals, courthouses, and so on, and in particular, to finance wars Gribbin and Bean In the modern era of lotteries presumed to have begun in with the initiation of the New Hampshire lottery in the United States , lotteries have generally not generated commensurately large revenues, but have served as an alternative revenue source that is politically expedient due to both participant and nonparticipant perceptions.

Lottery players generally cite the expected utility of a potential win as justification for playing, or at the least, the utility derived from thinking about what they would do with the money if they win. There is limited entertainment value in lottery instruments beyond these measures of expected utility, and no skill. Lottery players also recognize that even if they do not win, their money is designated for a generally desirable beneficiary group such as public schools, the elderly, or specific public works projects.

Lottery commissions recognize the lack of entertainment value in their games and thus must constantly innovate to maintain player interest in participation. Nonplayers appreciate that lotteries allow them to shift a portion of the municipal tax burden to those who do not understand or care about the long odds of winning. From a procedural standpoint, lottery games fall into two basic categories: Instant games are mostly scratch-off instruments whereby the player uses a coin or some other means to remove a coating from areas on a card, attempting to match a particular series of like symbols to win a predetermined amount.

These games represent a relatively minor portion of the revenue raised by lotteries, but the area in lottery administration that requires the most innovation to maintain player interest. Lotto games are closer to the illegal numbers games mentioned above, requiring the winning player to match from three to six numbers, most frequently printed on ping-pong balls drawn from a container.

The payouts in these games are substantial, ranging from hundreds to hundreds of millions of dollars. Most of these lotto games reflect odds that follow simple mathematical combinations, for example x C 6 is a standard for many U. The 53 C 6 game implies that odds of winning are 1 in approximately 22 million. Longer odds are encountered in multistate games that also imply that the last ball drawn reflects a specific number e. Lottery games are generally available in a large number of retail locations including grocery stores, convenience stores, and other establishments that are licensed by the municipality to distribute the tickets.

Consequently, lottery ticket sales are frequently higher per capita in large cities as opposed to small towns and rural areas Clotfelter and Cook There are other significant demographic characteristics of lottery players that identify the implications of the tax inherent in lottery games.

Consistently, researchers have discovered that lottery players tend to be older, and frequently members of racial and ethnic minority groups. Far more players come from large municipalities. There is significant crossover between states and countries whenever jackpots of the lotto games become large, and women tend to play lottery games slightly more than men.

From an economic standpoint, the most significant demographic reality of lotteries is that while lottery play increases with income, it does so at a declining rate, suggesting that the routinely 50 percent tax rate inherent in lottery games is regressive Clotfelter and Cook , among many.

Among the other economic implications of lotteries, lotteries are inefficient from a tax standpoint. The responsiveness of demand for lotto games to price changes is often greater than one in absolute value, implying that taxes inherent in lottery games do not raise the same levels of revenue for the same cost as other tax sources. The magnitude of this effect is mitigated whenever a municipality increases the frequency of lotto games during the week, so current trends have reduced this effect somewhat Mason, Steagall, and Fabritius Lottery tax revenues are generally relatively small compared to other tax sources, and are not as stable given that their magnitudes frequently depend on rollovers, and the impact that they have on player frenzy.

Earmarking of lottery revenues to specific recipients is a bait-and-switch process that motivates players to justify their involvement while legislative bodies shift funds away from the designated recipient simultaneously. Numerous studies have shown that designated recipients of lottery revenues, for example, public education, are often worse off after the creation of a lottery see, for example, Gribbin and Bean As more states adopt lotteries, the competition for lottery player dollars becomes more intense while the attractiveness of playing lottery games wane.

This makes it likely that future lottery revenues generated by all states will diminish. In summary, lotteries are a means by which legislative groups motivate individuals to provide tax revenue that they do not perceive as such in exchange for minute chances of winning cash awards. The economic consequences of these lotteries are just as condemning. National Tax Journal State Lotteries in America. Independent Review 10 3: Steagall, and Michael M. Public Finance Quarterly 25 5: Although lotteries had been utilized as a means of redistributing goods and wealth since Roman times, they began to develop on a large scale in fifteenth-century Europe , where they were used by governments as a means of raising revenue.

The first recorded lottery was held in in Burgundy, with the proceeds going toward the fortification of the town. The state of Germany established a national lottery in ; between and , the French loterie, created by Francis I, enriched some individuals as well as the nation; and Florence's La Lotto de Firenze was the first public lottery to pay money for prizes in In Britain , Queen Elizabeth I chartered a general lottery in to raise money for the building of harbors and other good works, and in , its role was extended when the money it raised enabled the Virginia Company to establish the New World colony of Jamestown.

Such funds were a lifeline to the struggling company and accounted for half its annual income by The utility of lotteries to emergent nation-states, most of which struggled to have sufficient revenues, was immense, and from the fifteenth century on, lotteries were enthusiastically exploited by the monarchs and politicians of Europe. These institutions played a crucial role in the creation of young states' domestic and foreign policy, raising funds for public projects as well as financing their imperial adventures abroad.

Lotteries were also hugely popular throughout the population, although motivation to participate varied according to social position. While the poor were attracted by the chance of huge prizes for relatively small stakes, the wealthy regarded lotteries as a means of demonstrating patriotism and supporting the national cause by purchasing tickets. However, like other forms of gambling, the position of lotteries became increasingly tenuous throughout the seventeenth century.

Although attractive as a way of generating revenue, they were also regarded with suspicion by those who thought them antithetical to the Protestant work ethic.

At the same time, practical problems involved in the running of lotteries began to emerge. Private operators intervened in drawings, buying tickets in bulk for excessive markups, and also offering side bets, or "insurance," on the main lottery — practices that the state did not derive revenue from. Allegations of fraud and dishonesty were rife, and criticism that lotteries encouraged mass gambling, idleness, and greed in the populace increased.

On top of this, by the late seventeenth century, with the increasing development of their economic infrastructures and tax bases, the economic utility of lotteries to governments began to decline. Accordingly, legislation was drafted that began to limit participation in lotteries — at least for the poor. Although many continued to operate illegally, such moves effectively outlawed the lottery for all but the wealthiest in society, destroying their popular base and ultimately demonstrating the patrician nature of legislation that had from the start been driven by political and economic expediency.

The History of Gambling in England. Originally published London, The Age of Chance: Gambling in Western Culture. London and New York , Encyclopedia of the Early Modern World. The term is not applicable when lots are drawn without payment by the interested parties to determine some matter, e. The absence of any element of skill or play distinguishes the lottery as a form of gambling. Under common law in England and the United States lotteries were lawful. They paid for many public buildings and founded and supported educational, charitable, and religious enterprises.

Private lotteries, which were particularly susceptible to fraudulent practices, were first generally prohibited in the early 19th cent. Most publicly sponsored lotteries were discontinued not long afterward. With the adoption in of a federal statute prohibiting the transportation of lottery tickets or prizes by mail or in interstate commerce, the largest American state lottery—that of Louisiana—came to an end.

It was not until more than 50 years later that state lotteries were again legalized in the United States, when New Hampshire authorized a sweepstakes lottery, the proceeds of which were to go to education. With the assistance of computers, 42 states and the District of Columbia now operate daily and weekly lotteries with huge payoffs; states also participate in regional and multistate lotteries, ranging from Tri-State Megabucks Maine, New Hampshire, and Vermont to Powerball with 31 states and territories.

Often the lottery drawings are televised. Lotteries are also lawful in many other countries, some of which jointly operate multinational lotteries. Print this article Print all entries for this topic Cite this article. The Rise and Fall of Lotteries The southern states relied on lotteries after the Civil War to finance Reconstruction Rebirth in the s googletag. Learn more about citation styles.

Instant Lottery Ticket Background During the last few decades, lottery tickets have become an increasingly popular form of legal gambling in the United States. If you make sure your choices add up to at least that still gives you several million combinations but it is suitably biases it towards the higher numbers that many other people tend to avoid. You must choose them at random but you want to bias your choices so they are at the farther end.

Dr Haigh spoke as lottery fever gripped the nation over the huge jackpot. Powerball sales on Thursday were double the previous record for that day and it is possible the estimated jackpot could rise again before the draw,. Queues of punters buying Lotto tickets Image: Video Loading Video Unavailable. Click to play Tap to play. The video will start in 8 Cancel Play now.

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Murder Barmaid, 22, found brutally murdered in park after disappearing on Christmas Eve had been 'stabbed in stomach' A member of the public found the body of Iuliana Tudos - aka Juliana or Julie - in an outbuilding next to a sports pitch in Finsbury Park, London, three days after she disappeared. Hospitals Terrified mum finds 'lifeless' son, 3, covered in black vomit she went to wake him up for nursery Leanne Smith feared her son Freddie had a common sickness bug until the youngster began to pass blood.

House fires Mum, whose four children died in tragic house fire, remains critically ill in hospital Michelle Pearson is still fighting for her life in hospital after the fire at her home in Walkden, Greater Manchester. Metropolitan Police Happy Valley actress describes terror as thug 'chases and attacks her in street during attempted kidnapping' Tina Harris posted on Facebook: Bradley Lowery Petition calling for Bradley Lowery to become 'Britain's youngest knight' in New Years Honours The six-year-old captured the hearts of millions after raising awareness of cancer Neuroblastoma this year before he died.

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Arsenal FC Arsene Wenger is concerned about tension between Alexis Sanchez and his Arsenal team-mates The Gunners boss is aware of the underlying issue and trying to handle it before the stand-off gets out of hand.

A photographer who gained access to a slaughterhouse and dog meat restaurant has revealed his shocking images to raise awareness about the "horrifying" practice. Rape Woman raped with broken tree branch in horrific attack by "inhuman monster" loses two-year fight for life. Anna Barmina, 33, took almost one year to regain consciousness and never left her hospital bed after she was dragged into bushes by sex monster Gizar Ziyangareev.

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The deal is valid at the likes of Argos, Very and Currys. The thirsty youngster gulped down a third of her drink before pushing it away in disgust, her dad says.

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Missing persons Missing student Sophie Smith 'spotted on CCTV walking towards seafront' after vanishing from home on Boxing Day Police say the year-old was last seen walking towards the seafront in Gorleston when she went missing. Virgin Islands offered the Powerball. Mega Millions is a popular multi-state game that is offered in twelve states.

Players choose six numbers from two separate number pools: All six numbers must be chosen in the drawing to win the jackpot. Drawings are held twice weekly. Mega Millions was originally known as the Big Game. The first Big Game drawing took place on September 6, Ticket sales increased dramatically. The lotteries in Connecticut, Georgia, Kentucky, Louisiana, and Tennessee were operated by quasi-governmental or privatized lottery corporations.

In most states enforcement authority regarding fraud and abuse rested with the attorney general's office, state police, or the lottery commission. The amount of oversight and control that each legislature has over its lottery agency differs from state to state.

Even though lotteries are a multimillion-dollar business, lottery commissions employ only a few thousand people nationwide. Lottery commissions set up, monitor, and run the games offered in their states, but the vast majority of lottery sales are by retail outlets that contract to sell the games.

California had the most retailers 19, , followed by Texas 16, and New York 15, Half of all lottery retailers were convenience stores. Other outlets included various kinds of stores, nonprofit organizations churches and fraternal organizations , service stations, restaurants and bars, bowling alleys, and newsstands. Retailers get commissions on lottery sales and bonuses when they sell winning tickets. Some state lottery Web sites list the stores where winners purchased their tickets.

Lottery tickets are often impulse purchases, so retailers sell them near the checkout. This also allows store operators to keep an eye on ticket vending machines to prevent play by underage customers. Because convenience stores increasingly offer pay-at-the-pump gasoline sales — transactions that are likely to decrease in-store traffic — lottery officials in Minnesota and several other states are contemplating ways to sell and print tickets at the gas pumps.

In fact, a patent U. In the New Jersey Lottery Commission was considering selling lottery tickets in mass-merchandise stores, such as Target and Home Depot. Many state lottery commissions conduct demographic studies to get a better picture of lottery players, largely because they want to better target them in marketing campaigns.

The findings in two states provide some insight into lottery players. Men were more likely than women to play the lottery Older people were more likely than younger people to play the lottery, and people who were employed at least part time These figures suggest that a worsening economy may be partially responsible for the drop in lottery players in The amount of money various demographic groups spent on the lottery differed greatly, however.

Young people, Native Americans, males, and individuals with. The South Carolina survey also reported where and when South Carolinians purchased their tickets. Sixty percent claimed to purchase their tickets after four in the afternoon.

Groups of people frequently pool their money and buy lottery tickets, particularly for large jackpots. Group wins are beneficial to the lotteries because they generate more media coverage than solo wins and expose a wider group of friends, relatives, and coworkers to the idea that lotteries are winnable.

However, pooling arrangements, even those between only two people, can lead to disagreements if a group actually wins a jackpot. Several such groups have ended up in court, but given the number of winners every year, such cases are relatively rare. Some states have formalized group play. Lotto captains have access to a special Web site that gives them tips on organizing and running group play.

They can download and print forms that help them track players, games, dates, and jackpots. As an incentive, lotto captains can participate in special drawings for cash and prizes. According to state lottery officials, far more people enrolled to be captains than was expected. The lottery described them as hard-core players who promote lottery games, recruit new players, and provide valuable feedback about lottery promotions. The most recent captains program was rolled out by Rhode Island in April The state began offering the PowerBall Group Play Program that allows group play captains access to a special group play page and a group play tool kit.

A lottery is a unique gambling event because it costs only a small amount of money for a chance to win a large jackpot. Even though the odds are extremely long, the huge jackpot is the main selling feature.

Rollover jackpots spur ticket sales. As more people buy tickets, the jackpot grows, whereas the odds of winning decrease. However, this does not deter people from buying tickets — sales actually increase under these circumstances. Griffiths and Richard T. An Overview of European Research , https: Among the most common reasons are the lure of a large jackpot in exchange for a small investment; successful advertising; publicity about jackpot winners; ignorance of probability theory; televised drawings; overestimating the positive outcomes and underestimating the negative ones; the credibility of government backing; and players' belief in their own luck.

However, perhaps the most important finding by Griffiths and Wood concerns. According to the researchers, many people select the same numbers week after week.

As time goes by and their numbers are not selected, they do not become discouraged. Instead, they think their chances of winning are getting better. Often, players experience near misses, in which two or more of their numbers come up in the jackpot drawing. This only convinces them that they are getting closer to the big win. They become increasingly entrapped in playing their numbers and fear skipping even one drawing. According to Wood and Griffiths, this mind-set has its roots in a common myth that the probability of winning increases the longer a losing streak lasts.

The researchers find that buying lottery tickets sets up a vicious cycle for poor people: Proponents of lotteries usually use economic arguments to justify their position.

They point out that lotteries provide state governments with a relatively easy way to increase their revenues without imposing more taxes. The games are financially beneficial to the many small businesses that sell lottery tickets and to larger companies that participate in merchandising campaigns or provide advertising or computer services.

In addition, lottery advocates surmise, the games provide cheap entertainment to people who want to play, while raising money for the betterment of all. Lottery opponents also have economic arguments.

They contend that lotteries contribute only a small percentage of total state revenues and, therefore, have a limited effect on state programs. Lotteries cost money to operate and lure people into parting with their money under false hopes. In addition, opponents contend that those targeted by lotteries come particularly from lower income brackets and may not be able to afford to gamble. This sales amount is then split between prizes, administrative costs, retailer commissions, and state profits.

Every state reported sales were higher in than in The states allocate their lottery profits in different ways. Census Bureau March 17, ,http: In other words, a lottery retailer keeps a certain percentage of the money taken in from lottery sales.

Most states also have incentive-based programs for retailers that meet particular sales criteria. For example, the Wisconsin lottery pays retailers a bonus for increasing ticket sales by particular amounts.

Lottery officials believe the incentive program, which encourages retailers to ask customers if they would like to buy lottery tickets, is more effective than an increase in commission.

Some states, such as New York, require that unclaimed winnings be returned to the prize pool. Other states allocate such funds to lottery administrative costs or to specific state programs.

For example, in Texas unclaimed prizes go to funds that benefit hospital research and payment of indigent health. The California State Lottery November 22, , http: In general, the lottery agencies subtract taxes before awarding large prizes. Lottery proponents often advocate lotteries for their economic benefits to education.

Some lotteries dedicate all or a portion of their profits toward K — 12 or higher education. However, opponents often argue that these profits do not provide additional dollars for education but simply replace general fund dollars that would have been spent on education anyway. He examined data for twelve states that had enacted lotteries for education between and However, the increase fell sharply in following years and eventually lagged behind states without lottery-generated education funds.

Most of the money raised by lotteries is spent on marketing, prizes, and retail commissions. In addition, as more lotteries are created, they are competing for players, leading lotteries to increase the size of their prizes, which shrinks the percentage of money that goes to education. Miller finds that as money from the lottery simply replaces other funds, schools gain no additional funding.

Students must have at least a 3. Most recipients are recent high school graduates who pursue college degrees. Room and board expenses are not covered. The HOPE scholarship program is one of the country's largest state-financed merit-based aid programs and is credited with significantly increasing the attendance of in-state residents at Georgia colleges.

Similar programs include Kentucky's Educational Excellence Scholarship http: In the United States lotteries enjoy unprecedented popularity. They are legal in forty-two states and are generally considered a benign form of entertainment with two enormous selling points: Opposition to lotteries is generally based on religious or moral reasons.

Some people consider all forms of gambling to be wrong, and state-sponsored lotteries may be particularly abhorrent to them. Such a message might be particularly troubling if it is directed toward lower-income people. In economics terminology, a tax that places a higher burden on lower-income groups than higher-income groups in terms of percentage of their income is called regressive. Even though the lottery is not really a tax, many people consider it to be a form of voluntary taxation because the proceeds fund government programs.

The economist Philip J. The NGISC expresses serious concern about the heavy reliance of lotteries on less-educated, lower-income people. It also mentions that an unusually large number of lottery outlets are concentrated in poor neighborhoods. Joseph McCrary and Thomas J. Results of a Statewide Survey , http: The ten zip codes with the highest lottery sales for the previous six fiscal years were all in Chicago. The zip code with the highest lottery sales in the state, , coincided with predominantly African-American and Latino low-income communities on the city's south side.

Samuel also finds that residents in poorer communities spent a larger portion of their income on lottery tickets than did people in more affluent neighborhoods. Gebeloff and DeHaven gathered data on lottery sales in New Jersey by zip code and compared that data to income and population data for each zip code from to The results clearly show that those who lived in poorer areas bought far more lottery tickets than those living in wealthy ones.

In addition, less wealthy neighborhoods had more lottery retailers per capita. The ratio of lottery retailers per 5, people was 4 to 1 in low-income areas, compared to roughly 1. Haisley, Mostafa, and Loewenstein back up these studies, finding that people who perceive themselves as poor are more likely to buy lottery tickets than other people. Poor people see the lottery as a way to improve their financial situation. The researchers determine that poor people spending money on the lottery is a factor in their inability to improve their relative finances.

Proceeds from the Georgia lottery fund only education programs. If these programs provide more benefits to the poor than to the wealthy, it could be argued that this compensates for the regressive nature of the state lottery. Cornwell and Mustard claim that counties with the highest incomes and white populations receive significantly more HOPE scholarships.

Joint Study Commission Report ,http: The Vinson Institute reports that lottery play was inversely related to education level.

In other words, people with fewer years of education played the lottery more often than those with more years of education. It also finds that lottery spending per person was highest in counties where African-Americans made up a larger percentage of the population. Regarding the HOPE scholarship program, the Vinson Institute indicates that white students received a disproportionately high amount of the funds, compared to African-American students. The Vinson Institute notes that this disproportionate relationship was true for every year examined, back to However, the institute states that the gap narrowed substantially over that time.

Analysis of Georgia's lottery-funded prekindergarten program provided completely different results. The Vinson Institute finds that the rate of enrollment in the prekindergarten program was higher in lower-income areas of the state than in affluent areas. It concludes that this particular lottery program is more beneficial to poorer people, African-Americans, and those who regularly play the lottery than to other groups in the state.

Bowden of Saint Leo University finds that minority and low-income students do not have proportionate access to higher education in lottery states. Surveys show that lottery play is the most popular and widely practiced form of gambling in the United States.

However, does the combination of easy and widespread access and general public acceptance mean that lottery players are more likely to develop serious gambling problems? Dean Gerstein et al. At-risk gamblers are defined as those who gamble regularly and may be prone to a gambling problem. However, the researchers find that multivisit lottery patrons had the lowest prevalence of pathological and problem gambling among the gambling types examined.

They note that lottery players who do have a problem may be less able to recognize it because lottery players tend to undercount their losses.

Lottery players generally lose small amounts at a time, even though these small amounts may eventually total a large amount. In other words, a casino gambler who loses thousands of dollars in a day might be more likely to admit having a gambling problem than a lottery player who loses the same amount over a longer period. Sixty students were given the South Oaks Gambling Screen, which is used to determine the probability that a person has a gambling problem.

All the students were shown sixteen lotto tickets, each marked with a different sequence of six numbers. The sequences were random e. The students were then asked to choose the twelve tickets they would most like to play in the lottery and to rank those tickets from best to worst. Random sequences were by far the most popular: The students were also asked to explain the reasoning behind their selections. The presence of significant numbers e. However, those students who regularly played the lottery or participated in other gambling activities were more likely to display bias when choosing their favorite tickets.

The probable pathological gamblers were found to have more illusions about control than all other participants. As of August , only eight states did not have lotteries: Hawaii and Utah permit no types of gambling and seem unlikely to amend their constitutions. A lottery in Nevada is very unlikely because of the tremendous growth of casino gambling there. Alaskan politicians have shown minimal interest in a lottery.

Though many state lottery bills have been introduced in the Alabama and Mississippi legislatures, most of them died in committee and the rest were soundly defeated on the floor. For several years members of the Wyoming legislature have been pushing a bill to allow the sale of Powerball tickets.

The latest bill was defeated in the Wyoming House of Representatives in February In Arkansas lottery supporters sponsored a petition drive in that enabled a proposed constitutional amendment that would allow a lottery benefiting education to appear on the ballot in the November 4, , general election. However, individual states cannot increase jackpot sizes without either greatly increasing sales or decreasing the portion of lottery revenue going to public funds.

The first option is difficult to achieve and the second is politically dangerous. Jackpot fatigue has driven increasing membership in multistate lotteries, such as Mega Millions and Powerball. Even as they cope with jackpot fatigue, many lotteries also face pressure to increase the amount of profit going to government programs.

Several states are considering decreasing their lottery payout to raise much needed funds. Opponents argue that cutting prize payouts will reduce sales, thereby making it nearly impossible to increase state revenues. Cite this article Pick a style below, and copy the text for your bibliography. Retrieved December 29, from Encyclopedia. During the last few decades, lottery tickets have become an increasingly popular form of legal gambling in the United States.

One popular game is the instant win, or scratch off lottery which features tickets that have the winning or losing numbers concealed on the game card itself. The winning numbers are typically hidden by a coating, which is removed by rubbing.

By removing this coating, the owner of the ticket can instantly determine the ticket's winning status instead of waiting for a matching number to be drawn. Since the cash value of the ticket is determined at the time of printing, the tickets must be designed and manufactured with extraordinary security precautions to avoid ticket fraud.

The design of instant lottery tickets varies from game to game. To entice potential purchasers, games may be thematically linked to popular interests such as sporting events, television shows, or even other gambling games like poker card or horse racing.

Some states have even allowed customers to participate in the design process. Winners were judged based on theme, style of play, graphics, and originality. Regardless of the design type, instant lottery tickets are designed to be played by scratching off a concealing coating to reveal numbers, letters, or symbols that will hopefully match the designated winning symbol located somewhere on the ticket.

These games are all designed with multiple security features to prevent tickets from being counterfeited or tampered with. There are several techniques used to breach game security, which must be taken into consideration during the design process. One method of defrauding the lottery is to decode the relationship between the serial number on the ticket and the ticket's lottery number.

Each ticket contains an individual serial number composed of a series of digits or alphanumeric characters. This number is used by the game operator to track the distribution of tickets from the operator to the selling agents and for accounting of sold and unsold tickets. It may also include information that shows the ticket is only valid for certain games or dates. These numbers are especially helpful in case tickets are lost or stolen and can be used to track tickets to make sure they are not inappropriately claimed.

By understanding the relationship between the serial number and the lottery number, one could try to locate lots or batches of tickets that are more likely to be winners. Other methods to breach ticket security attempt to directly view the lottery number without scratching off the ticket covering. One way this is done is by candling, which involves shining a bright light on the ticket in an effort to read the lottery number through either the front or back covering.

Another technique, known as delamination, involves separating the different layers of the ticket to make the numbers visible. This technique can even be used after the owner has uncovered a winning number and turned in the ticket for redemption. In this scenario, individuals with access to winning tickets could separate the front layer of the ticket that contains the winning number and glue it onto a new back layer that has a different name and address for the winner. Still another way of circumventing lottery security, called wicking, uses solvents e.

The design features employed to prevent these security breaches vary from game to game. In general, these features involve the serial number and the concealing coating. One key to controlling game security is to select serial numbers, which do not reveal any information about the winning status of the ticket.

This is done by randomly encoding tickets with a series of computer-generated numbers or symbols. Each lottery game uses a specific algorithm, or mathematical process, to randomize the relationship between the serial and lottery numbers. This prevents anyone from discovering the connection between the two numbers. When properly encoded, the serial number cannot be deciphered by the ticket purchaser but still provides useful information to the ticket agent.

Printing matching, coded numbers on the front and back of each ticket can help ensure winning tickets have not been tampered with.

The security features used to prevent candling, delamination, and wicking involve the coating used to conceal the lottery number. A heavy foil coating can be used over the numbers to prevent light from passing through the ticket and illuminating the numbers. However, this foil is expensive to add and it does not prevent delamination. A better way to prevent the numbers from being read through the coating is to use an opaque covering in conjunction with confusion patterns imprinted on the back and front of the ticket.

These confusion patterns are random designs used to obscure the image when light is shined through the ticket. This method can also be used to prevent wicking by utilizing dyes in the coating which are responsive to solvents. If anyone attempts to dissolve the concealing coating, the ink bleeds and obscures the lottery numbers.

The basic materials required for ticket manufacture are the same as those employed for any similar ticket or card printing. The main component is paper stock of appropriate stiffness, but aluminum foil is also used as a component of some multilayer tickets. Other important raw materials include the suitable inks, adhesives to laminate multi-part tickets, and the scratch-off coating materials used to conceal the number. These coatings are most often made using acrylic resins.

Printing technology is continually evolving and this evolution is likely to lead to new methods for lottery ticket production. For example, improved encryption technology could result in the creation of more secure lottery numbers.

Likewise, newly developed chemical methods of concealing lottery numbers could produce less expensive tickets than those currently used. Perhaps of more interest for the future are alternate ways in which games may be played. One method under consideration by the lottery commission involves a video terminal instead of a paper ticket.

It is conceivable that at some time in the future, an instant lottery game could even be played over the Internet on a personal computer. State-sanctioned lotteries have a long history as a way of raising "painless" revenue for "good" causes. Most European countries France, Holland, England utilized lotteries to finance capital improvements, such as roads, harbors, and bridges.

For the original European immigrants to the United States, lotteries were an established method of raising the funds to build the infrastructure a developing country needed. Hence lotteries often are seen by American legislators as the harmless form of gambling that can be harnessed for the common good.

The United States has experienced three waves of lottery activity. The first wave of gaming activity in North America began with the landing of the first European settlers but became much more widespread with the outbreak of the Revolutionary War. A few of these lotteries were sponsored by colonies to help finance their armies, but most lotteries were operated by nonprofit institutions, such as colleges, local school systems, and hospitals, to finance building projects or needed capital improvements.

For example, both Yale and Harvard used lotteries to build dormitories. The primary reason for the failure of Harvard's lottery was that it had to compete with lotteries to support British troops fighting the French and Indian War.

It should also be noted that, during this wave of lottery activity, no colony ever operated its own lottery. Private operators conducted lotteries. An organization or a worthy project, such as the Erie Canal, received permission from state legislatures to operate a lottery to support its "worthy" cause. But these private operators often were less than honest in conducting lotteries.

One famous lottery scandal occurred in Washington, D. In Congress authorized a Grand National Lottery to pay for improvements to the city. Tickets were sold, and the drawing took place. But before anyone could collect winnings, the private agent that organized the lottery for the District fled town. It was a sober reminder to local officials that authorizing lotteries could be potentially dangerous, and the movement to ban lotteries began.

From to all but two states prohibited lottery activity due to various scandals that occurred in the s and s. However, less than forty years later lotteries once again exploded onto the national scene.

With the conclusion of the Civil War, the South had to find some method to finance the construction of roads, bridges, school buildings, and various other social capital projects to recover from war damage.

One way was to permit private operators to conduct lotteries to raise revenue for reconstruction. The primary difference between this period of lottery activity and the previous period was the scale of ticket sales. Whereas in the previous lottery boom, sales of tickets were confined to local regions, these southern lotteries took on a national scope and, ironically, were particularly popular in the North.

The most famous southern lottery, known as the Serpent, was conducted in Louisiana. In the late s almost 50 percent of all mail coming into New Orleans was connected with this lottery. As was the case with the first wave of lottery activity, controversy surrounding lotteries eventually led to a federal government ban. In the charter that authorized the running of the lottery in Louisiana was about to expire.

Various state legislatures passed resolutions calling on Congress and President Benjamin Harrison to stop this lottery. In late Congress passed the primary piece of legislation that crippled the Louisiana lottery by denying the operators the use of the federal mail.

If customers could no longer mail in their requests for tickets, then the lottery's life would be short-lived. By the Louisiana lottery had vanished, and as the twentieth century dawned, gaming activity in the United States had ceased.

But like a phoenix lotteries were resurrected as governments searched for additional sources in the late twentieth century. In New Hampshire voters approved a lottery. The rationale used by proponents to justify its legalization was strictly economic.

Proceeds from the lottery were to fund education, thereby averting the enactment of either a sales or an income tax for New Hampshire. The lottery was an instant success, with 90 percent of the lottery tickets purchased by out-of-state residents. But this lesson was not lost on neighboring northeastern states, and in the next ten years every northeastern state approved a lottery.

However, the greatest growth of state lotteries occurred in the period between and By only three states Utah, Hawaii, and Tennessee did not have some form of legalized gaming. Lotteries and associated forms of "gaming" had gained a social acceptance that had not occurred in previous waves of lottery activity.

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The jackpot must be won tonight as it has rolled over 13 times and if no players get all six numbers, then those with five and the bonus ball will waltz off with the windfall. Dr Haigh said choosing a combination of numbers that add up to significantly increases your chances of winning big.

Of course, luck is still going to play its part — after all the lotto number drawn the least amount of times is, spookily, People spread their numbers uniformly over the 59 places.

If you make sure your choices add up to at least that still gives you several million combinations but it is suitably biases it towards the higher numbers that many other people tend to avoid. You must choose them at random but you want to bias your choices so they are at the farther end. Dr Haigh spoke as lottery fever gripped the nation over the huge jackpot.

Powerball sales on Thursday were double the previous record for that day and it is possible the estimated jackpot could rise again before the draw,. Queues of punters buying Lotto tickets Image: Video Loading Video Unavailable. Click to play Tap to play. The video will start in 8 Cancel Play now.

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Video lottery terminals are electronic games of chance played on video screens that simulate popular casino games such as poker and blackjack. Keno and video lottery games are considered by many to be casino-type games, especially because they can be played every few minutes in the case of fast keno or at will in the case of video lottery terminals , which makes them more controversial and generally less acceptable than more traditional lottery games.

As of , many lottery games were conducted using computer networks. Retail outlets have computer terminals that are linked by phone lines to a central computer at the lottery commission, which records wagers as they are made.

The computer network is a private, dedicated network that can be accessed only by lottery officials and retailers. Players can either choose their numbers themselves or allow the computer to select. The computer link allows retailers to validate winning tickets. Most lotto drawings are televised live. Some states also air lottery game shows in which contestants compete for money and prizes. Contestants, who are chosen through lottery drawings or special promotions, spin a big wheel to win cash prizes in front of a cheering audience.

If the top prize, usually called the jackpot, is not won, the amount of the jackpot usually rolls over to the next drawing, increasing the jackpot. Lotteries are often most popular when the jackpot has rolled over several times and grown to an unusually large amount. Most states allow players to choose in advance how a jackpot will be paid to them — either all at once the cash lump-sum prize or in installments an annuity, usually paid out over twenty or twenty-five years.

Either way, in most states taxes are subtracted from the prize. In Massachusetts became the first state to offer an instant lottery game using scratch-off tickets. Lottery organizations offer many different scratch games with various themes.

Scratch games run for a specified period, usually for several months to a year. Many scratch tickets allow a player to win multiple times on each ticket. The top prize amounts are often hundreds of thousands of dollars.

However, some of the games offer prizes besides money, including merchandise, trips, vehicles, and tickets to sporting events and concerts. For example, in a Missouri scratch game gave away a seat at a table at the World Poker Tour tournament. The total winnings for such prizes often include payment by the lottery commission of federal and state income taxes on the value of the prizes.

Many lotteries have teamed with sports franchises and other companies to provide popular products as prizes. For example, in June the New Jersey Lottery Commission announced a scratch game in which a Harley-Davidson motorcycle was the top prize. Many brand-name promotions feature famous celebrities, sports figures and teams, or cartoon characters.

These merchandising deals benefit the companies through product exposure and advertising; the lotteries benefit because the companies share advertising costs. The higher-priced tickets appeal to many scratch players because they offer more valuable prizes and payouts than regular-priced tickets.

Most lotteries operate toll-free numbers or Web sites that provide information on scratch-game prizes. Patrons can find out which prizes have been awarded and which remain to be claimed. Sometimes even nonwinning lottery tickets have value. Most state lotteries run occasional second-chance drawings — and even third-chance drawings — in which holders of nonwinning tickets for particular games can still win cash or prizes. For example, the New York Lottery held a second-chance drawing during the summer of in which holders of nonwinning Subway Series scratch tickets could win Mets and New York Yankees tickets and merchandise.

Video lottery games are highly profitable computer games that are played on video lottery terminals VLTs. They are monitored and controlled by a central computer system overseen by a state's lottery agency. VLTs were operated in nine states in Three of these states, Rhode Island, Delaware, and West Virginia, launched the first multistate, progressive video lottery game in a progressive jackpot is one that increases with each game played. Those in Rhode Island are leased by the state to private operators.

VLTs in the other states are owned by state lottery commissions. Except in New York, profits from. The VLTs in New York were challenged in court because the state's constitution requires that lottery proceeds benefit education programs. Some VLT revenue was going to racetracks, so the courts declared the diversion of lottery revenue unconstitutional.

In the state legislature amended the law. Under the new legislation the money for the racetrack owners comes out of the state's general fund and all the money gathered from the VLTs goes to education.

Video lottery games have become controversial because many people consider them hard-core gambling. They allow continuous gambling for large sums of money, as opposed to lotto play, which features drawings only once or twice a week. Opponents of video lottery games contend that they are much more addictive than traditional lottery games because of their availability and instant payoffs.

They also contend that the games have a special appeal to young people, who are accustomed to playing video games. During the s lottery officials realized that multistate lotteries could offer higher payoffs than single-state lotteries because the costs of running one game could be shared.

It administers a variety of games, the best known of which is Powerball. In this lotto game each ticket has six numbers: The odds of winning the jackpot are about million to 1. Drawings have been held twice weekly since the first drawing on April 22, It was split evenly among eight coworkers in Lincoln, Nebraska.

Virgin Islands offered the Powerball. Mega Millions is a popular multi-state game that is offered in twelve states. Players choose six numbers from two separate number pools: All six numbers must be chosen in the drawing to win the jackpot. Drawings are held twice weekly. Mega Millions was originally known as the Big Game. The first Big Game drawing took place on September 6, Ticket sales increased dramatically. The lotteries in Connecticut, Georgia, Kentucky, Louisiana, and Tennessee were operated by quasi-governmental or privatized lottery corporations.

In most states enforcement authority regarding fraud and abuse rested with the attorney general's office, state police, or the lottery commission. The amount of oversight and control that each legislature has over its lottery agency differs from state to state. Even though lotteries are a multimillion-dollar business, lottery commissions employ only a few thousand people nationwide. Lottery commissions set up, monitor, and run the games offered in their states, but the vast majority of lottery sales are by retail outlets that contract to sell the games.

California had the most retailers 19, , followed by Texas 16, and New York 15, Half of all lottery retailers were convenience stores. Other outlets included various kinds of stores, nonprofit organizations churches and fraternal organizations , service stations, restaurants and bars, bowling alleys, and newsstands. Retailers get commissions on lottery sales and bonuses when they sell winning tickets.

Some state lottery Web sites list the stores where winners purchased their tickets. Lottery tickets are often impulse purchases, so retailers sell them near the checkout. This also allows store operators to keep an eye on ticket vending machines to prevent play by underage customers. Because convenience stores increasingly offer pay-at-the-pump gasoline sales — transactions that are likely to decrease in-store traffic — lottery officials in Minnesota and several other states are contemplating ways to sell and print tickets at the gas pumps.

In fact, a patent U. In the New Jersey Lottery Commission was considering selling lottery tickets in mass-merchandise stores, such as Target and Home Depot. Many state lottery commissions conduct demographic studies to get a better picture of lottery players, largely because they want to better target them in marketing campaigns. The findings in two states provide some insight into lottery players.

Men were more likely than women to play the lottery Older people were more likely than younger people to play the lottery, and people who were employed at least part time These figures suggest that a worsening economy may be partially responsible for the drop in lottery players in The amount of money various demographic groups spent on the lottery differed greatly, however.

Young people, Native Americans, males, and individuals with. The South Carolina survey also reported where and when South Carolinians purchased their tickets.

Sixty percent claimed to purchase their tickets after four in the afternoon. Groups of people frequently pool their money and buy lottery tickets, particularly for large jackpots. Group wins are beneficial to the lotteries because they generate more media coverage than solo wins and expose a wider group of friends, relatives, and coworkers to the idea that lotteries are winnable. However, pooling arrangements, even those between only two people, can lead to disagreements if a group actually wins a jackpot.

Several such groups have ended up in court, but given the number of winners every year, such cases are relatively rare. Some states have formalized group play. Lotto captains have access to a special Web site that gives them tips on organizing and running group play. They can download and print forms that help them track players, games, dates, and jackpots.

As an incentive, lotto captains can participate in special drawings for cash and prizes. According to state lottery officials, far more people enrolled to be captains than was expected. The lottery described them as hard-core players who promote lottery games, recruit new players, and provide valuable feedback about lottery promotions. The most recent captains program was rolled out by Rhode Island in April The state began offering the PowerBall Group Play Program that allows group play captains access to a special group play page and a group play tool kit.

A lottery is a unique gambling event because it costs only a small amount of money for a chance to win a large jackpot. Even though the odds are extremely long, the huge jackpot is the main selling feature. Rollover jackpots spur ticket sales. As more people buy tickets, the jackpot grows, whereas the odds of winning decrease.

However, this does not deter people from buying tickets — sales actually increase under these circumstances. Griffiths and Richard T. An Overview of European Research , https: Among the most common reasons are the lure of a large jackpot in exchange for a small investment; successful advertising; publicity about jackpot winners; ignorance of probability theory; televised drawings; overestimating the positive outcomes and underestimating the negative ones; the credibility of government backing; and players' belief in their own luck.

However, perhaps the most important finding by Griffiths and Wood concerns. According to the researchers, many people select the same numbers week after week. As time goes by and their numbers are not selected, they do not become discouraged. Instead, they think their chances of winning are getting better. Often, players experience near misses, in which two or more of their numbers come up in the jackpot drawing.

This only convinces them that they are getting closer to the big win. They become increasingly entrapped in playing their numbers and fear skipping even one drawing. According to Wood and Griffiths, this mind-set has its roots in a common myth that the probability of winning increases the longer a losing streak lasts.

The researchers find that buying lottery tickets sets up a vicious cycle for poor people: Proponents of lotteries usually use economic arguments to justify their position. They point out that lotteries provide state governments with a relatively easy way to increase their revenues without imposing more taxes. The games are financially beneficial to the many small businesses that sell lottery tickets and to larger companies that participate in merchandising campaigns or provide advertising or computer services.

In addition, lottery advocates surmise, the games provide cheap entertainment to people who want to play, while raising money for the betterment of all.

Lottery opponents also have economic arguments. They contend that lotteries contribute only a small percentage of total state revenues and, therefore, have a limited effect on state programs. Lotteries cost money to operate and lure people into parting with their money under false hopes. In addition, opponents contend that those targeted by lotteries come particularly from lower income brackets and may not be able to afford to gamble. This sales amount is then split between prizes, administrative costs, retailer commissions, and state profits.

Every state reported sales were higher in than in The states allocate their lottery profits in different ways. Census Bureau March 17, ,http: In other words, a lottery retailer keeps a certain percentage of the money taken in from lottery sales.

Most states also have incentive-based programs for retailers that meet particular sales criteria. For example, the Wisconsin lottery pays retailers a bonus for increasing ticket sales by particular amounts.

Lottery officials believe the incentive program, which encourages retailers to ask customers if they would like to buy lottery tickets, is more effective than an increase in commission. Some states, such as New York, require that unclaimed winnings be returned to the prize pool. Other states allocate such funds to lottery administrative costs or to specific state programs. For example, in Texas unclaimed prizes go to funds that benefit hospital research and payment of indigent health.

The California State Lottery November 22, , http: In general, the lottery agencies subtract taxes before awarding large prizes. Lottery proponents often advocate lotteries for their economic benefits to education. Some lotteries dedicate all or a portion of their profits toward K — 12 or higher education.

However, opponents often argue that these profits do not provide additional dollars for education but simply replace general fund dollars that would have been spent on education anyway.

He examined data for twelve states that had enacted lotteries for education between and However, the increase fell sharply in following years and eventually lagged behind states without lottery-generated education funds.

Most of the money raised by lotteries is spent on marketing, prizes, and retail commissions. In addition, as more lotteries are created, they are competing for players, leading lotteries to increase the size of their prizes, which shrinks the percentage of money that goes to education.

Miller finds that as money from the lottery simply replaces other funds, schools gain no additional funding. Students must have at least a 3. Most recipients are recent high school graduates who pursue college degrees. Room and board expenses are not covered. The HOPE scholarship program is one of the country's largest state-financed merit-based aid programs and is credited with significantly increasing the attendance of in-state residents at Georgia colleges.

Similar programs include Kentucky's Educational Excellence Scholarship http: In the United States lotteries enjoy unprecedented popularity. They are legal in forty-two states and are generally considered a benign form of entertainment with two enormous selling points: Opposition to lotteries is generally based on religious or moral reasons. Some people consider all forms of gambling to be wrong, and state-sponsored lotteries may be particularly abhorrent to them. Such a message might be particularly troubling if it is directed toward lower-income people.

In economics terminology, a tax that places a higher burden on lower-income groups than higher-income groups in terms of percentage of their income is called regressive.

Even though the lottery is not really a tax, many people consider it to be a form of voluntary taxation because the proceeds fund government programs. The economist Philip J. The NGISC expresses serious concern about the heavy reliance of lotteries on less-educated, lower-income people. It also mentions that an unusually large number of lottery outlets are concentrated in poor neighborhoods. Joseph McCrary and Thomas J.

Results of a Statewide Survey , http: The ten zip codes with the highest lottery sales for the previous six fiscal years were all in Chicago. The zip code with the highest lottery sales in the state, , coincided with predominantly African-American and Latino low-income communities on the city's south side.

Samuel also finds that residents in poorer communities spent a larger portion of their income on lottery tickets than did people in more affluent neighborhoods. Gebeloff and DeHaven gathered data on lottery sales in New Jersey by zip code and compared that data to income and population data for each zip code from to The results clearly show that those who lived in poorer areas bought far more lottery tickets than those living in wealthy ones.

In addition, less wealthy neighborhoods had more lottery retailers per capita. The ratio of lottery retailers per 5, people was 4 to 1 in low-income areas, compared to roughly 1. Haisley, Mostafa, and Loewenstein back up these studies, finding that people who perceive themselves as poor are more likely to buy lottery tickets than other people.

Poor people see the lottery as a way to improve their financial situation. The researchers determine that poor people spending money on the lottery is a factor in their inability to improve their relative finances. Proceeds from the Georgia lottery fund only education programs. If these programs provide more benefits to the poor than to the wealthy, it could be argued that this compensates for the regressive nature of the state lottery. Cornwell and Mustard claim that counties with the highest incomes and white populations receive significantly more HOPE scholarships.

Joint Study Commission Report ,http: The Vinson Institute reports that lottery play was inversely related to education level. In other words, people with fewer years of education played the lottery more often than those with more years of education. It also finds that lottery spending per person was highest in counties where African-Americans made up a larger percentage of the population.

Regarding the HOPE scholarship program, the Vinson Institute indicates that white students received a disproportionately high amount of the funds, compared to African-American students. The Vinson Institute notes that this disproportionate relationship was true for every year examined, back to However, the institute states that the gap narrowed substantially over that time. Analysis of Georgia's lottery-funded prekindergarten program provided completely different results.

The Vinson Institute finds that the rate of enrollment in the prekindergarten program was higher in lower-income areas of the state than in affluent areas. It concludes that this particular lottery program is more beneficial to poorer people, African-Americans, and those who regularly play the lottery than to other groups in the state.

Bowden of Saint Leo University finds that minority and low-income students do not have proportionate access to higher education in lottery states. Surveys show that lottery play is the most popular and widely practiced form of gambling in the United States. However, does the combination of easy and widespread access and general public acceptance mean that lottery players are more likely to develop serious gambling problems?

Dean Gerstein et al. At-risk gamblers are defined as those who gamble regularly and may be prone to a gambling problem. However, the researchers find that multivisit lottery patrons had the lowest prevalence of pathological and problem gambling among the gambling types examined.

They note that lottery players who do have a problem may be less able to recognize it because lottery players tend to undercount their losses. Lottery players generally lose small amounts at a time, even though these small amounts may eventually total a large amount.

In other words, a casino gambler who loses thousands of dollars in a day might be more likely to admit having a gambling problem than a lottery player who loses the same amount over a longer period. Sixty students were given the South Oaks Gambling Screen, which is used to determine the probability that a person has a gambling problem. All the students were shown sixteen lotto tickets, each marked with a different sequence of six numbers. The sequences were random e.

The students were then asked to choose the twelve tickets they would most like to play in the lottery and to rank those tickets from best to worst. Random sequences were by far the most popular: The students were also asked to explain the reasoning behind their selections.

The presence of significant numbers e. However, those students who regularly played the lottery or participated in other gambling activities were more likely to display bias when choosing their favorite tickets.

The probable pathological gamblers were found to have more illusions about control than all other participants. As of August , only eight states did not have lotteries: Hawaii and Utah permit no types of gambling and seem unlikely to amend their constitutions.

A lottery in Nevada is very unlikely because of the tremendous growth of casino gambling there. Alaskan politicians have shown minimal interest in a lottery.

Though many state lottery bills have been introduced in the Alabama and Mississippi legislatures, most of them died in committee and the rest were soundly defeated on the floor. For several years members of the Wyoming legislature have been pushing a bill to allow the sale of Powerball tickets. The latest bill was defeated in the Wyoming House of Representatives in February In Arkansas lottery supporters sponsored a petition drive in that enabled a proposed constitutional amendment that would allow a lottery benefiting education to appear on the ballot in the November 4, , general election.

However, individual states cannot increase jackpot sizes without either greatly increasing sales or decreasing the portion of lottery revenue going to public funds. The first option is difficult to achieve and the second is politically dangerous. Jackpot fatigue has driven increasing membership in multistate lotteries, such as Mega Millions and Powerball. Even as they cope with jackpot fatigue, many lotteries also face pressure to increase the amount of profit going to government programs.

Several states are considering decreasing their lottery payout to raise much needed funds. Opponents argue that cutting prize payouts will reduce sales, thereby making it nearly impossible to increase state revenues. Cite this article Pick a style below, and copy the text for your bibliography.

Retrieved December 29, from Encyclopedia. During the last few decades, lottery tickets have become an increasingly popular form of legal gambling in the United States. One popular game is the instant win, or scratch off lottery which features tickets that have the winning or losing numbers concealed on the game card itself. The winning numbers are typically hidden by a coating, which is removed by rubbing. By removing this coating, the owner of the ticket can instantly determine the ticket's winning status instead of waiting for a matching number to be drawn.

Since the cash value of the ticket is determined at the time of printing, the tickets must be designed and manufactured with extraordinary security precautions to avoid ticket fraud.

The design of instant lottery tickets varies from game to game. To entice potential purchasers, games may be thematically linked to popular interests such as sporting events, television shows, or even other gambling games like poker card or horse racing.

Some states have even allowed customers to participate in the design process. Winners were judged based on theme, style of play, graphics, and originality. Regardless of the design type, instant lottery tickets are designed to be played by scratching off a concealing coating to reveal numbers, letters, or symbols that will hopefully match the designated winning symbol located somewhere on the ticket. These games are all designed with multiple security features to prevent tickets from being counterfeited or tampered with.

There are several techniques used to breach game security, which must be taken into consideration during the design process. One method of defrauding the lottery is to decode the relationship between the serial number on the ticket and the ticket's lottery number. Each ticket contains an individual serial number composed of a series of digits or alphanumeric characters.

This number is used by the game operator to track the distribution of tickets from the operator to the selling agents and for accounting of sold and unsold tickets. It may also include information that shows the ticket is only valid for certain games or dates. These numbers are especially helpful in case tickets are lost or stolen and can be used to track tickets to make sure they are not inappropriately claimed. By understanding the relationship between the serial number and the lottery number, one could try to locate lots or batches of tickets that are more likely to be winners.

Other methods to breach ticket security attempt to directly view the lottery number without scratching off the ticket covering. One way this is done is by candling, which involves shining a bright light on the ticket in an effort to read the lottery number through either the front or back covering.

Another technique, known as delamination, involves separating the different layers of the ticket to make the numbers visible. This technique can even be used after the owner has uncovered a winning number and turned in the ticket for redemption. In this scenario, individuals with access to winning tickets could separate the front layer of the ticket that contains the winning number and glue it onto a new back layer that has a different name and address for the winner.

Still another way of circumventing lottery security, called wicking, uses solvents e. The design features employed to prevent these security breaches vary from game to game. In general, these features involve the serial number and the concealing coating. One key to controlling game security is to select serial numbers, which do not reveal any information about the winning status of the ticket. This is done by randomly encoding tickets with a series of computer-generated numbers or symbols.

Each lottery game uses a specific algorithm, or mathematical process, to randomize the relationship between the serial and lottery numbers. This prevents anyone from discovering the connection between the two numbers. When properly encoded, the serial number cannot be deciphered by the ticket purchaser but still provides useful information to the ticket agent. Printing matching, coded numbers on the front and back of each ticket can help ensure winning tickets have not been tampered with.

The security features used to prevent candling, delamination, and wicking involve the coating used to conceal the lottery number. A heavy foil coating can be used over the numbers to prevent light from passing through the ticket and illuminating the numbers. However, this foil is expensive to add and it does not prevent delamination.

A better way to prevent the numbers from being read through the coating is to use an opaque covering in conjunction with confusion patterns imprinted on the back and front of the ticket. These confusion patterns are random designs used to obscure the image when light is shined through the ticket.

SLOTS MAGIC WONDERLAND

These types of games, called passive drawing games, were the dominant lottery games in By they had ceased to exist, as consumers demanded more exciting games that provided quicker payoffs and more betting options.

Nearly all states that operate lotteries offer cash lotto and instant games. Players of lotto games select a group of numbers from a large set and are then awarded prizes based on how many picked numbers offer a second set of numbers chosen in a random drawing. Scratch-off instant games are paper tickets on which certain spaces have been coated with a scratch-off substance that when removed reveals numbers or text underneath that must match posted sequences to win.

Most states offer other numbers games, such as three-and four-digit games. Pull tabs, spiel, keno, and video lottery games are much less common. Pull tabs are twoply paper tickets that must be separated to reveal symbols or numbers underneath that must match posted sequences to win. Spiel is an add-on feature to a lotto game that provides an extra set of numbers for a fee that must be matched to numbers selected in the random drawing to win. Keno is a lotto game in which a set of numbers is selected from a large field of numbers; players select a smaller set of numbers and are awarded prizes based on how many of their numbers match those in the drawn set.

Video lottery terminals are electronic games of chance played on video screens that simulate popular casino games such as poker and blackjack. Keno and video lottery games are considered by many to be casino-type games, especially because they can be played every few minutes in the case of fast keno or at will in the case of video lottery terminals , which makes them more controversial and generally less acceptable than more traditional lottery games.

As of , many lottery games were conducted using computer networks. Retail outlets have computer terminals that are linked by phone lines to a central computer at the lottery commission, which records wagers as they are made.

The computer network is a private, dedicated network that can be accessed only by lottery officials and retailers. Players can either choose their numbers themselves or allow the computer to select.

The computer link allows retailers to validate winning tickets. Most lotto drawings are televised live. Some states also air lottery game shows in which contestants compete for money and prizes. Contestants, who are chosen through lottery drawings or special promotions, spin a big wheel to win cash prizes in front of a cheering audience.

If the top prize, usually called the jackpot, is not won, the amount of the jackpot usually rolls over to the next drawing, increasing the jackpot. Lotteries are often most popular when the jackpot has rolled over several times and grown to an unusually large amount.

Most states allow players to choose in advance how a jackpot will be paid to them — either all at once the cash lump-sum prize or in installments an annuity, usually paid out over twenty or twenty-five years. Either way, in most states taxes are subtracted from the prize. In Massachusetts became the first state to offer an instant lottery game using scratch-off tickets. Lottery organizations offer many different scratch games with various themes.

Scratch games run for a specified period, usually for several months to a year. Many scratch tickets allow a player to win multiple times on each ticket. The top prize amounts are often hundreds of thousands of dollars. However, some of the games offer prizes besides money, including merchandise, trips, vehicles, and tickets to sporting events and concerts. For example, in a Missouri scratch game gave away a seat at a table at the World Poker Tour tournament.

The total winnings for such prizes often include payment by the lottery commission of federal and state income taxes on the value of the prizes. Many lotteries have teamed with sports franchises and other companies to provide popular products as prizes. For example, in June the New Jersey Lottery Commission announced a scratch game in which a Harley-Davidson motorcycle was the top prize. Many brand-name promotions feature famous celebrities, sports figures and teams, or cartoon characters.

These merchandising deals benefit the companies through product exposure and advertising; the lotteries benefit because the companies share advertising costs.

The higher-priced tickets appeal to many scratch players because they offer more valuable prizes and payouts than regular-priced tickets. Most lotteries operate toll-free numbers or Web sites that provide information on scratch-game prizes. Patrons can find out which prizes have been awarded and which remain to be claimed. Sometimes even nonwinning lottery tickets have value. Most state lotteries run occasional second-chance drawings — and even third-chance drawings — in which holders of nonwinning tickets for particular games can still win cash or prizes.

For example, the New York Lottery held a second-chance drawing during the summer of in which holders of nonwinning Subway Series scratch tickets could win Mets and New York Yankees tickets and merchandise. Video lottery games are highly profitable computer games that are played on video lottery terminals VLTs. They are monitored and controlled by a central computer system overseen by a state's lottery agency.

VLTs were operated in nine states in Three of these states, Rhode Island, Delaware, and West Virginia, launched the first multistate, progressive video lottery game in a progressive jackpot is one that increases with each game played.

Those in Rhode Island are leased by the state to private operators. VLTs in the other states are owned by state lottery commissions. Except in New York, profits from. The VLTs in New York were challenged in court because the state's constitution requires that lottery proceeds benefit education programs. Some VLT revenue was going to racetracks, so the courts declared the diversion of lottery revenue unconstitutional. In the state legislature amended the law.

Under the new legislation the money for the racetrack owners comes out of the state's general fund and all the money gathered from the VLTs goes to education. Video lottery games have become controversial because many people consider them hard-core gambling. They allow continuous gambling for large sums of money, as opposed to lotto play, which features drawings only once or twice a week. Opponents of video lottery games contend that they are much more addictive than traditional lottery games because of their availability and instant payoffs.

They also contend that the games have a special appeal to young people, who are accustomed to playing video games. During the s lottery officials realized that multistate lotteries could offer higher payoffs than single-state lotteries because the costs of running one game could be shared.

It administers a variety of games, the best known of which is Powerball. In this lotto game each ticket has six numbers: The odds of winning the jackpot are about million to 1. Drawings have been held twice weekly since the first drawing on April 22, It was split evenly among eight coworkers in Lincoln, Nebraska. Virgin Islands offered the Powerball. Mega Millions is a popular multi-state game that is offered in twelve states. Players choose six numbers from two separate number pools: All six numbers must be chosen in the drawing to win the jackpot.

Drawings are held twice weekly. Mega Millions was originally known as the Big Game. The first Big Game drawing took place on September 6, Ticket sales increased dramatically. The lotteries in Connecticut, Georgia, Kentucky, Louisiana, and Tennessee were operated by quasi-governmental or privatized lottery corporations. In most states enforcement authority regarding fraud and abuse rested with the attorney general's office, state police, or the lottery commission.

The amount of oversight and control that each legislature has over its lottery agency differs from state to state. Even though lotteries are a multimillion-dollar business, lottery commissions employ only a few thousand people nationwide.

Lottery commissions set up, monitor, and run the games offered in their states, but the vast majority of lottery sales are by retail outlets that contract to sell the games. California had the most retailers 19, , followed by Texas 16, and New York 15, Half of all lottery retailers were convenience stores.

Other outlets included various kinds of stores, nonprofit organizations churches and fraternal organizations , service stations, restaurants and bars, bowling alleys, and newsstands.

Retailers get commissions on lottery sales and bonuses when they sell winning tickets. Some state lottery Web sites list the stores where winners purchased their tickets.

Lottery tickets are often impulse purchases, so retailers sell them near the checkout. This also allows store operators to keep an eye on ticket vending machines to prevent play by underage customers. Because convenience stores increasingly offer pay-at-the-pump gasoline sales — transactions that are likely to decrease in-store traffic — lottery officials in Minnesota and several other states are contemplating ways to sell and print tickets at the gas pumps.

In fact, a patent U. In the New Jersey Lottery Commission was considering selling lottery tickets in mass-merchandise stores, such as Target and Home Depot. Many state lottery commissions conduct demographic studies to get a better picture of lottery players, largely because they want to better target them in marketing campaigns.

The findings in two states provide some insight into lottery players. Men were more likely than women to play the lottery Older people were more likely than younger people to play the lottery, and people who were employed at least part time These figures suggest that a worsening economy may be partially responsible for the drop in lottery players in The amount of money various demographic groups spent on the lottery differed greatly, however. Young people, Native Americans, males, and individuals with.

The South Carolina survey also reported where and when South Carolinians purchased their tickets. Sixty percent claimed to purchase their tickets after four in the afternoon. Groups of people frequently pool their money and buy lottery tickets, particularly for large jackpots. Group wins are beneficial to the lotteries because they generate more media coverage than solo wins and expose a wider group of friends, relatives, and coworkers to the idea that lotteries are winnable.

However, pooling arrangements, even those between only two people, can lead to disagreements if a group actually wins a jackpot. Several such groups have ended up in court, but given the number of winners every year, such cases are relatively rare. Some states have formalized group play. Lotto captains have access to a special Web site that gives them tips on organizing and running group play. They can download and print forms that help them track players, games, dates, and jackpots.

As an incentive, lotto captains can participate in special drawings for cash and prizes. According to state lottery officials, far more people enrolled to be captains than was expected. The lottery described them as hard-core players who promote lottery games, recruit new players, and provide valuable feedback about lottery promotions. The most recent captains program was rolled out by Rhode Island in April The state began offering the PowerBall Group Play Program that allows group play captains access to a special group play page and a group play tool kit.

A lottery is a unique gambling event because it costs only a small amount of money for a chance to win a large jackpot. Even though the odds are extremely long, the huge jackpot is the main selling feature. Rollover jackpots spur ticket sales. As more people buy tickets, the jackpot grows, whereas the odds of winning decrease. However, this does not deter people from buying tickets — sales actually increase under these circumstances.

Griffiths and Richard T. An Overview of European Research , https: Among the most common reasons are the lure of a large jackpot in exchange for a small investment; successful advertising; publicity about jackpot winners; ignorance of probability theory; televised drawings; overestimating the positive outcomes and underestimating the negative ones; the credibility of government backing; and players' belief in their own luck.

However, perhaps the most important finding by Griffiths and Wood concerns. According to the researchers, many people select the same numbers week after week. As time goes by and their numbers are not selected, they do not become discouraged.

Instead, they think their chances of winning are getting better. Often, players experience near misses, in which two or more of their numbers come up in the jackpot drawing. This only convinces them that they are getting closer to the big win. They become increasingly entrapped in playing their numbers and fear skipping even one drawing. According to Wood and Griffiths, this mind-set has its roots in a common myth that the probability of winning increases the longer a losing streak lasts.

The researchers find that buying lottery tickets sets up a vicious cycle for poor people: Proponents of lotteries usually use economic arguments to justify their position.

They point out that lotteries provide state governments with a relatively easy way to increase their revenues without imposing more taxes. The games are financially beneficial to the many small businesses that sell lottery tickets and to larger companies that participate in merchandising campaigns or provide advertising or computer services.

In addition, lottery advocates surmise, the games provide cheap entertainment to people who want to play, while raising money for the betterment of all. Lottery opponents also have economic arguments. They contend that lotteries contribute only a small percentage of total state revenues and, therefore, have a limited effect on state programs.

Lotteries cost money to operate and lure people into parting with their money under false hopes. In addition, opponents contend that those targeted by lotteries come particularly from lower income brackets and may not be able to afford to gamble. This sales amount is then split between prizes, administrative costs, retailer commissions, and state profits. Every state reported sales were higher in than in The states allocate their lottery profits in different ways.

Census Bureau March 17, ,http: In other words, a lottery retailer keeps a certain percentage of the money taken in from lottery sales. Most states also have incentive-based programs for retailers that meet particular sales criteria. For example, the Wisconsin lottery pays retailers a bonus for increasing ticket sales by particular amounts. Lottery officials believe the incentive program, which encourages retailers to ask customers if they would like to buy lottery tickets, is more effective than an increase in commission.

Some states, such as New York, require that unclaimed winnings be returned to the prize pool. Other states allocate such funds to lottery administrative costs or to specific state programs.

For example, in Texas unclaimed prizes go to funds that benefit hospital research and payment of indigent health. The California State Lottery November 22, , http: In general, the lottery agencies subtract taxes before awarding large prizes.

Lottery proponents often advocate lotteries for their economic benefits to education. Some lotteries dedicate all or a portion of their profits toward K — 12 or higher education. However, opponents often argue that these profits do not provide additional dollars for education but simply replace general fund dollars that would have been spent on education anyway.

He examined data for twelve states that had enacted lotteries for education between and However, the increase fell sharply in following years and eventually lagged behind states without lottery-generated education funds. Most of the money raised by lotteries is spent on marketing, prizes, and retail commissions. In addition, as more lotteries are created, they are competing for players, leading lotteries to increase the size of their prizes, which shrinks the percentage of money that goes to education.

Miller finds that as money from the lottery simply replaces other funds, schools gain no additional funding. Students must have at least a 3. Most recipients are recent high school graduates who pursue college degrees. Room and board expenses are not covered. The HOPE scholarship program is one of the country's largest state-financed merit-based aid programs and is credited with significantly increasing the attendance of in-state residents at Georgia colleges.

Similar programs include Kentucky's Educational Excellence Scholarship http: In the United States lotteries enjoy unprecedented popularity. They are legal in forty-two states and are generally considered a benign form of entertainment with two enormous selling points: Opposition to lotteries is generally based on religious or moral reasons.

Some people consider all forms of gambling to be wrong, and state-sponsored lotteries may be particularly abhorrent to them. Such a message might be particularly troubling if it is directed toward lower-income people. In economics terminology, a tax that places a higher burden on lower-income groups than higher-income groups in terms of percentage of their income is called regressive. Even though the lottery is not really a tax, many people consider it to be a form of voluntary taxation because the proceeds fund government programs.

The economist Philip J. The NGISC expresses serious concern about the heavy reliance of lotteries on less-educated, lower-income people. It also mentions that an unusually large number of lottery outlets are concentrated in poor neighborhoods.

Joseph McCrary and Thomas J. Results of a Statewide Survey , http: The ten zip codes with the highest lottery sales for the previous six fiscal years were all in Chicago.

The zip code with the highest lottery sales in the state, , coincided with predominantly African-American and Latino low-income communities on the city's south side. Samuel also finds that residents in poorer communities spent a larger portion of their income on lottery tickets than did people in more affluent neighborhoods. Gebeloff and DeHaven gathered data on lottery sales in New Jersey by zip code and compared that data to income and population data for each zip code from to The results clearly show that those who lived in poorer areas bought far more lottery tickets than those living in wealthy ones.

In addition, less wealthy neighborhoods had more lottery retailers per capita. The ratio of lottery retailers per 5, people was 4 to 1 in low-income areas, compared to roughly 1. Haisley, Mostafa, and Loewenstein back up these studies, finding that people who perceive themselves as poor are more likely to buy lottery tickets than other people.

Poor people see the lottery as a way to improve their financial situation. The researchers determine that poor people spending money on the lottery is a factor in their inability to improve their relative finances. Proceeds from the Georgia lottery fund only education programs. If these programs provide more benefits to the poor than to the wealthy, it could be argued that this compensates for the regressive nature of the state lottery.

Cornwell and Mustard claim that counties with the highest incomes and white populations receive significantly more HOPE scholarships. Joint Study Commission Report ,http: The Vinson Institute reports that lottery play was inversely related to education level. In other words, people with fewer years of education played the lottery more often than those with more years of education.

It also finds that lottery spending per person was highest in counties where African-Americans made up a larger percentage of the population. Regarding the HOPE scholarship program, the Vinson Institute indicates that white students received a disproportionately high amount of the funds, compared to African-American students. The Vinson Institute notes that this disproportionate relationship was true for every year examined, back to However, the institute states that the gap narrowed substantially over that time.

Analysis of Georgia's lottery-funded prekindergarten program provided completely different results. The Vinson Institute finds that the rate of enrollment in the prekindergarten program was higher in lower-income areas of the state than in affluent areas. It concludes that this particular lottery program is more beneficial to poorer people, African-Americans, and those who regularly play the lottery than to other groups in the state.

Bowden of Saint Leo University finds that minority and low-income students do not have proportionate access to higher education in lottery states. Surveys show that lottery play is the most popular and widely practiced form of gambling in the United States. However, does the combination of easy and widespread access and general public acceptance mean that lottery players are more likely to develop serious gambling problems?

Dean Gerstein et al. At-risk gamblers are defined as those who gamble regularly and may be prone to a gambling problem. However, the researchers find that multivisit lottery patrons had the lowest prevalence of pathological and problem gambling among the gambling types examined. They note that lottery players who do have a problem may be less able to recognize it because lottery players tend to undercount their losses. Lottery players generally lose small amounts at a time, even though these small amounts may eventually total a large amount.

In other words, a casino gambler who loses thousands of dollars in a day might be more likely to admit having a gambling problem than a lottery player who loses the same amount over a longer period. Sixty students were given the South Oaks Gambling Screen, which is used to determine the probability that a person has a gambling problem.

All the students were shown sixteen lotto tickets, each marked with a different sequence of six numbers. The sequences were random e. The students were then asked to choose the twelve tickets they would most like to play in the lottery and to rank those tickets from best to worst. Random sequences were by far the most popular: The students were also asked to explain the reasoning behind their selections. The presence of significant numbers e. However, those students who regularly played the lottery or participated in other gambling activities were more likely to display bias when choosing their favorite tickets.

The probable pathological gamblers were found to have more illusions about control than all other participants. As of August , only eight states did not have lotteries: Hawaii and Utah permit no types of gambling and seem unlikely to amend their constitutions. A lottery in Nevada is very unlikely because of the tremendous growth of casino gambling there.

Alaskan politicians have shown minimal interest in a lottery. Though many state lottery bills have been introduced in the Alabama and Mississippi legislatures, most of them died in committee and the rest were soundly defeated on the floor. For several years members of the Wyoming legislature have been pushing a bill to allow the sale of Powerball tickets. The latest bill was defeated in the Wyoming House of Representatives in February In Arkansas lottery supporters sponsored a petition drive in that enabled a proposed constitutional amendment that would allow a lottery benefiting education to appear on the ballot in the November 4, , general election.

However, individual states cannot increase jackpot sizes without either greatly increasing sales or decreasing the portion of lottery revenue going to public funds.

The first option is difficult to achieve and the second is politically dangerous. Jackpot fatigue has driven increasing membership in multistate lotteries, such as Mega Millions and Powerball. Even as they cope with jackpot fatigue, many lotteries also face pressure to increase the amount of profit going to government programs. Several states are considering decreasing their lottery payout to raise much needed funds. Opponents argue that cutting prize payouts will reduce sales, thereby making it nearly impossible to increase state revenues.

Cite this article Pick a style below, and copy the text for your bibliography. Retrieved December 29, from Encyclopedia. During the last few decades, lottery tickets have become an increasingly popular form of legal gambling in the United States. One popular game is the instant win, or scratch off lottery which features tickets that have the winning or losing numbers concealed on the game card itself.

The winning numbers are typically hidden by a coating, which is removed by rubbing. By removing this coating, the owner of the ticket can instantly determine the ticket's winning status instead of waiting for a matching number to be drawn. Since the cash value of the ticket is determined at the time of printing, the tickets must be designed and manufactured with extraordinary security precautions to avoid ticket fraud. The design of instant lottery tickets varies from game to game.

To entice potential purchasers, games may be thematically linked to popular interests such as sporting events, television shows, or even other gambling games like poker card or horse racing.

Some states have even allowed customers to participate in the design process. Winners were judged based on theme, style of play, graphics, and originality. Regardless of the design type, instant lottery tickets are designed to be played by scratching off a concealing coating to reveal numbers, letters, or symbols that will hopefully match the designated winning symbol located somewhere on the ticket.

These games are all designed with multiple security features to prevent tickets from being counterfeited or tampered with. There are several techniques used to breach game security, which must be taken into consideration during the design process. One method of defrauding the lottery is to decode the relationship between the serial number on the ticket and the ticket's lottery number. Each ticket contains an individual serial number composed of a series of digits or alphanumeric characters.

This number is used by the game operator to track the distribution of tickets from the operator to the selling agents and for accounting of sold and unsold tickets.

It may also include information that shows the ticket is only valid for certain games or dates. These numbers are especially helpful in case tickets are lost or stolen and can be used to track tickets to make sure they are not inappropriately claimed. By understanding the relationship between the serial number and the lottery number, one could try to locate lots or batches of tickets that are more likely to be winners.

Other methods to breach ticket security attempt to directly view the lottery number without scratching off the ticket covering. One way this is done is by candling, which involves shining a bright light on the ticket in an effort to read the lottery number through either the front or back covering. Another technique, known as delamination, involves separating the different layers of the ticket to make the numbers visible. This technique can even be used after the owner has uncovered a winning number and turned in the ticket for redemption.

In this scenario, individuals with access to winning tickets could separate the front layer of the ticket that contains the winning number and glue it onto a new back layer that has a different name and address for the winner. Still another way of circumventing lottery security, called wicking, uses solvents e.

The design features employed to prevent these security breaches vary from game to game. In general, these features involve the serial number and the concealing coating. One key to controlling game security is to select serial numbers, which do not reveal any information about the winning status of the ticket. Dr Haigh said choosing a combination of numbers that add up to significantly increases your chances of winning big. Of course, luck is still going to play its part — after all the lotto number drawn the least amount of times is, spookily, People spread their numbers uniformly over the 59 places.

If you make sure your choices add up to at least that still gives you several million combinations but it is suitably biases it towards the higher numbers that many other people tend to avoid. You must choose them at random but you want to bias your choices so they are at the farther end. Dr Haigh spoke as lottery fever gripped the nation over the huge jackpot.

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