Lotteries: America's $70B Shame

My father once won $100,000 from a scratch off ticket. It was a $20.00 scratch off ticket. I gave him crap for years over it because between playing Keno, and buying other scratch offs, he's probably spent close to that trying to recreate the effect.

The thing is, he's very serious about his lottery. He enters every losing ticket into a second chance registration on Maryland's lottery site. (This was how I got him to start using the internet, actually) He won a few times and knows what he's losing. He's not bad at math. He's not rich either, he lives off of a very small military pension and has a job filling vending machines on a route.

I've pressed him again and again about how stupid the lottery is. I've pointed out the math, the bad odds, the addictive design of the games.. you name it. His answer remains the same. A shrug and "It's fun." I have since realized after spending afternoons with him at the places he likes to play, that it's his own odd social network. He knows all the employees, the other regulars. He complains about politics to the other players. He sweet talks the old ladies behind the counter. It's his excuse to leave the house. He keeps making his mortgage payments, keeps making his wife dinner every night, and takes care of his mother. If he wants to blow his fun-money on lottery at this point, I've just quit arguing with him and I go play with him when I visit. Losing 40 bucks to spend the afternoon with my old man is a bargain, in my eyes.

Ummm what happens when you apply your argument to allowing them to spend it on alcohol or cigarettes or a car or a thousand other things? This is a flawed argument my friend. No one group has a right to enforce their social, moral, economic or other ideology on another group based on what the enforcing group thinks is "right". That's a slippery slope with extra grease on it.

I used to think it'd be weird for criminals to use gambling to launder money - it'd be too expensive. But then I heard about FOB machines.

The UK has something called "fixed odds betting machines". These are sometimes used to launder money.

http://www.theguardian.com/uk-news/2013/nov/08/gambling-mach...

> Earlier this month the Gambling Commission, the industry regulator, fined Coral bookmakers £90,000 in profits it made from one drug dealer who had laundered almost £1m in its shops. Last month the industry regulator also publicly admitted what has long been privately acknowledged: FOBTs present a "high inherent money-laundering risk".

The machines take £200 at a time. This would have been mostly in £10 and £20 notes. It's not clear from the article if the launderer put the whole £1m through the machines, or "just" £90k.

> Dealers feed their drug money through the machines, losing a little and then cashing out with the vast majority of their stake, James says. They can then collect a printed ticket showing they have gambled that day – meaning that if stopped by police, they can answer questions about why an apparently unemployed young man carries hundreds of pounds in rolled-up cash.

Either way, it's a lot of cash.

Lotteries are really a great wait for the state to collect taxes. Unfortunately the way the are currently handled results in too much profiteering/skimming/corruption.