Opinions

The Gamble That Preys on the Poor

The lottery preys on low-income populations who play the lottery to try to escape poverty and relieve socioeconomic pressure.

Reading Time: 4 minutes

As she opens the doors of the local gas station, a girl is confronted at once with the cold, air-conditioned air. Exhausted from the responsibilities of a poor, single mother, she only intends to buy a small coffee, but as she approaches the register, the colorful array of promising jackpot wins catches her eye. She knows she’s on a tight budget, and her savings are running thin, but the temptation is too hard: she might be just one ticket away from wealth.

Lotteries are a form of gambling that involves drawing numbers to win a prize. Prizes may range from a couple thousand dollars to money with an absurd amount of zeros that no one would ever require in a lifetime. They may seem like an easy way to acquire wealth, but in reality, the chances of winning are significantly less than the chances of getting struck by lightning. The Mega Millions jackpot crossed the $1 billion mark for the first time ever in July 2022, as no one had matched the game’s numbers since April 2022. As more and more time passes after the previous game has been won, the overall jackpot increases. This year’s colossus cash prize only proves that the lottery is getting harder to win. Even so, many people keep buying tickets, hoping for even a slim chance of winning. Many of them are from the poor working class and are gambling away money that they simply may not have.

Low-income people make up a large portion of the lottery-buying demographic. Based on a 2012 survey, 61 percent of all lottery players are in the fifth socioeconomic bracket, or those making $32,048 or less annually. Most lottery tickets are also purchased in poorer neighborhoods. While those who make less than $10 thousand a year spend, on average, six percent of their income on lottery tickets, neighborhoods with annual incomes on the higher end hardly ever touch the lottery. The average U.S. household spends around $162 on the lottery per year. In comparison, low-income households may spend up to four times that amount.

While it may be common sense that winning the lottery is nearly impossible, there are still multiple incentives for those in poorer circumstances to keep playing. The lottery preys on the poor in several ways, from providing a seemingly easy way out of a desperate financial situation to emphasizing the misery of their lives. In contrast to the intimidating nature of big-winning tickets such as Mega Millions and Powerball, there are many types of smaller tickets called “scratch-offs” that have prizes on a more minute scale. These cash prizes typically max out at $500 and are particularly tempting to low-income communities. While prizes within the lower $100 range may not result in a drastic difference for the wealthy and middle class, $100 could make up one month’s groceries for lower-income people. Based on a survey conducted by MarketWatch, 21 percent of adults believe that the lottery is one of the only practical ways to secure their retirement fund, with this number being even higher at 38 percent among those who earned less than $25 thousand a year. According to executive director of the Chartered Financial Analyst program Stephen Brobeck, most Americans greatly overestimate their chances of winning the lottery.

The irrational amount of money low-income individuals spend on the lottery isn’t necessarily their fault. While budgeting can be better, the lottery is systematically at odds with the rationale of the poor. In most cases, they are desperately trying to escape poverty and believe that lotteries are “social equalizers,” in that there is an equal chance of winning, whether poor or rich. The irrationality of human nature to chase the unobtainable applies to both the rich and poor. Lower-income individuals are more susceptible and vulnerable in the face of the odds, no matter how small. A study done by Carnegie Mellon University found that when people were made to feel subjectively poor and aware of their financial state, they bought nearly twice as many tickets as the subjectively affluent group. People in poorer economic settings are more susceptible to the pressure of a simple ticket that promises an easy way out of misery. In this way, lotteries also profit off of people who feel stagnant in their surroundings and unsatisfied with their poverty. In addition, lotteries are designed to prey on people who are aware of their poverty. When large prizes are offered, lower-income individuals are more likely to rationalize purchasing a ticket with the mindset that if they spend just $5 now, they could end up with several times that amount.

In addition, lottery tickets are typically bought more often in neighborhoods with minority groups such as African Americans, who have been shown to spend nearly five times more on lottery tickets than white people. Places with a larger population of minorities usually have higher unemployment rates and eligibility for reduced lunch, traits typical of low-income households. According to the Howard Center for Investigative Journalism, stores that sell lottery tickets are disproportionately found in lower-income, minority neighborhoods, making it easier for poorer individuals to access the lottery. The poor are being exploited not only for their own desperation to gain wealth, but also by the purposeful placement of lottery distributors.

The lottery has been around in American culture for many years now, and attempts to eradicate it are impossible and unhelpful. However, things can be done to spread awareness to low-income groups about the exploitative nature of the lottery. If the whole game can’t be eradicated, the next best thing is to get rid of the incentive most low-income people have to play. As most of them play in a fit of desperation to get out of financially unstable situations, there are things that can be done to relieve the drive from poverty. More effective government aid programs can be enforced to help low-income individuals afford the necessities of daily life. The temptation to play the lottery is insurmountable, and for those who fall prey to a desperate financial situation, it may even seem like their only option. If the fear and burden of monetary instability are lessened, individuals may be less inclined to turn to the lottery as a solution.