When lotteries started 40+ years ago, they were justified by the intended use of the state’s piece of that action – that it was for the benefit of children’s education. Well, it’s 40 years later, and education has not gotten better or less expensive, even with the government’s piece of the lottery action. I personally believe that hidden taxes, like lotteries and gambling taxes, do not reduce the level of visible, painful taxation (like income taxes, property taxes, sales taxes). Instead, the hidden taxes merely give public officials more money to play with. I do not know whether any independent economists have researched this idea.

And why does any sensible entrepeneur think that the gambling business is a sure winner? Between Atlantic City and Eastern Connecticut, the market for gambling has adequate – if not excess – capacity. Actually, sensible entrepenueurs don’t think the gambling business is such a sure thing, or they would not be seeking public subsidies for their businesses. Let’s hope the New York state legislature rejects any requests for taxpayer support of gambling businesses.