You may be asking yourself; “What is wrong with the lottery system?”  The answer is simple, it doesn’t work they way it was supposed to.

Americans spend 68 BILLION dollars a year playing the lottery -according to CBS News-, and are inundated with advertisements from their respective state lottery commissions telling them how much good the lottery system does for various programs in their state.  In fact, in the 44 States with lottery systems, states collectively spend 500 million dollars a year trying to get you to play their lottery.

Many states, like North Carolina, began their lottery systems under the promise that a portion of funds from the lottery systems would go to help fund schools.  The reason why we mentioned North Carolina is that they actually named their lottery system “The North Carolina Education Lottery”.  However, in the 9 years since they began their lottery system, education funding in North Carolina has actually declined.  North Carolina is not alone in this. Of the 24 States that send lottery money to their education systems 21 of those states are either spend nothing additional or are actually spending less on education than they did previously. We just decided to pick on North Carolina a bit because they actually named their lottery system “The North Carolina Education Lottery”.

So you may be asking yourself, “How is it even possible that they are spending less on education when they are getting an influx of funds from the lottery?”  We know, It doesn’t really make sense unless you look at the budgetary systems as well.  You see, as money from the lottery systems has moved toward schools, money that was originally budgeted for schools via sales taxes, property taxes, and general fund disbursements has been taken from schools to fund other projects. This means that schools aren’t getting MORE money, they are getting DIFFERENT money in the same, or lesser, amounts. Which ultimately hurts schools because their funds are now tied to the state sanctioned gambling systems known as the Lottery. It is impossible to put forth a balanced budget for a school system, when you don’t know how much you can spend from year to year.

So we have to say that lottery system funds can only augment, not replace, already earmarked funds for education systems, or other programs that the lottery system funds are sent to.

Also, you need more players. If the states’ goal is to increase revenue they need more people to play. But with the odds of winning “The Power Ball” -our nation’s most popular multi-state lottery system- at 1 in 175,223,510 many think of the lottery as “You’re never gonna win, so why even try” But imagine if we lowered the odds of winning. And instead of the guarenteed minumum jackpot of 40 MILLION Dollars, twice a week (total of 80 MILLION),which ends up with the possibilty of 2 people, or groups, winning 40 Million dollars a week. What if we did 40 draws, twice a week (total of 80 draws), and made it so 80 people could win 1 MILLION a week? The United States COULD end up with over 4,000 new millionaires per year! Those new millionaires will put more money back into the economy. Think of it this way: if 104 people win massive jackpots those 104 people would go out and buy a new house, new car, new televisions, pay off debt, et cetera. But when 4,000 people do it a year we see a much bigger net positive impact on the economy from lottery winners.

But we have to understand that some times some draws will not have a winner. So we put the un-won funds into a bulk single draw at the end of the year to be held on Christmas Eve. And whatever funds are not won throughout the course of the year could be won by one lucky person, or group.

Imagine if the chance of winning went down from 1 in 175 million to 1 in 4.38 million. A LOT MORE PEOPLE WOULD PLAY. And now we get to the best part, you make the winnings TAX FREE! Yup, TAX FREE.

The next question “is how would we do this?”
Simple, through an Act of the United States Congress. That is correct, this would not be a states’ rights issue as most of the massive jackpot lottery systems that are played in this country are Multi-State Lotteries and Congress has the Constitutional authority to regulate interstate commerce via Article 1 Section 8 of the United States Constitution.

So to Recap;

    • You make sure that the lottery funds are augmenting programs, not fully funding them, so that the influx of money to the state is actually spent where they promised it would go;
    • You get more players by lowering the odds of winning;
    • And you make the winnings TAX FREE;
    • And it is Constitutional.





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