Aren lotteries (and other forms of gambling) just “zero-sum” games which contribute nothing to the economy?
Some economists have argued that since lotteries do not produce a tangible product they cannot contribute to the economy. However, there are many other businesses that do not product a tangible product, including medical offices, banks, law firms, movie theaters, and auto repair shops, to name a few. If the criterion for contributing to the economy is the production of a good, then all service businesses and over half the workforce contributes nothing to the economy. Lottery revenues contribute to the economy in a number of ways. Certainly that portion of lottery sales which return as prizes is simple redistribution, but revenues are also distributed to over 240,000 retail outlets as commissions, to the companies which supply lotteries such as ticket printers, data processing companies, advertising agencies, and delivery services, and most importantly, for the provision of goods and services through the programs lotteries were created to support.
