State-run Lotteries

They are regressive taxes. Only excuse might be otherwise the private sector will offer them and capture the revenues. Yet not convincing

I think people's preferences are often locally convex, so they may actually want lotteries. On the other hand probabilities are confusing

Obviously there are real issues here regarding addiction, progressivity, etc.

Such lotteries exploit behavioral gambling, causing, in effect, a regressive tax. Not welfare increasing, given alternative funding sources.
-see background information here

Addiction and consumer bias could mean that the product decreases welfare. But does it crowd out even worse gambling and associated crime?

Welfare impacts (+ & -) from state lotteries are probably much smaller than in past due to proliferation of alternative ways to gamble

I'm inclined to think that government should not exploit the public's vulnerability to gambling, but I'm also aware of counter-arguments.

The answer requires still-undone estimation of elasticities, incidence, & g.e. effects. Not to mention an SWF. Just silly to be certain.

Lotteries were oversold when introduced but there is a demand for this product and little evidence that consumers are involuntarily harmed.

Kearney "to what extent [is] the increase in consumer utility and public revenue offsets the associated social costs" still not sure we know
-see background information here

-see background information here

Can't say I have a strong view here, but people choose whether to participate, and the revenues are used for schools, roads...

Among the worst of social policies.

Lotteries are a regressive tax. The welfare effect depends on your social welfare function; for mine regressive taxes reduce welfare.

People seem to enjoy participating, which is more than one can say about taxes. But biases and addiction reduce my confidence about the net

If there were no state-run lotteries, more private institutions would enable possibly-biased consumers to gamble

States giving themselves a monopoly in this business is bad for sure, but if the alternative is prohibition is that better?