Stop selling the dream!

Howard Husock writes in City Journal,

…state lotteries are exempt from Federal Trade Commission “truth-in-advertising” regulation. Washington can’t regulate the actions of state governments. “If the lottery were run purely by private industry instead of by state governments, it is likely the FTC guidelines would prohibit much of the current lottery advertising,” observes Clott. “Without this baseline of protection, consumers fall prey to sophisticated, deceptive marketing strategies which are backed by massive financial resources.”

…In a culture rife with gambling opportunities, casino advertising, and Internet betting, one can’t blame state lottery advertising alone for problem gambling. But the state’s seal of approval carries special weight: here, the government is not offering help in solving problems—as it typically does—but actively promoting an activity that causes problems. State lottery advertising also has a corrosive effect on social norms. The ads promote the theme that work is not a source of purpose but an obstacle standing in the way of happiness. One is better off making a one-in-a-million bet than saving his money. These messages not only undermine the work ethic but also misrepresent how one finds fulfillment—through healthy personal habits, thrift, and striking a balance between work and family. Instead, millions hear that they’re chumps for taking such a path and would be wiser to play games of chance.

It’s time for states to ban lottery advertising. Sure, let people play, post the winning numbers—but stop selling the dream. Weaning government from our addiction to promoting lotteries wouldn’t be easy. An adjustment period would be necessary as lottery revenues fell—though perhaps the adjustment would not be dramatic. Massachusetts, among the first states to mount a lottery, later moved to limit advertising—at one point, cutting it from $12 million to just $400,000 a year—but the state has not seen lottery revenues crater. On the positive side, tax revenues might even increase as citizens, freed from such dispiriting messages, reembrace working and saving. In any case, though, getting states out of lottery advertising is the right thing to do.

Read more here.