Pros And Cons Of Having A Lottery

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On the flip side, the cost of having a lottery is another factor to exam. In reality, a state lottery is a state-created gambling monopoly whose gross sales are taxed at a rate of about 33 percent. What is often overlooked when considering a lottery is the very high cost of administering a lottery when compared to other ways of raising money such as tax increases. The administrative costs are usually expressed as a percentage of the gross lottery sales but analytically, it should be expressed as a percentage of net revenue, less the amount returned to players in prize money. When this is done, the administrative cost could be as high as 52 percent. When considering the administrative costs associated with raising money through other forms of

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