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Contents:
Chapter 1 Cont.
History of Lotteries
by J.P. Allenbright
© 1988 & 2004 by J.P. Allenbright. All Rights Reserved
(Note: The following excerpt from J.P. Allenbright's book about lotteries is featured with his permission on this website as a public service.)
When the Cuban lottery gained popularity in New Orleans - so much so that carrier pigeons flew regularly from Cuba with a list of winners - the Louisiana Lottery Company "encouraged" the passing of laws prohibiting the sale of all outside lottery tickets within its state. When its charter was challenged it raised its annual fee to $1,250,000, granting this sum, equally divided to schools, charities and for levees. Thus, through legal process, acquisitions, grants, bribery, coercion - virtually by any advantageous means – the Company became so influential that it partly owned the American news media and the Government itself. The Louisiana Lottery Company slithered into every nook and cranny of America, thus rightfully living up to its sobriquet "The Serpent."
Alarmed at its influence, in 1890 President Harrison and the Congress jointly agreed that lotteries were "swindling" enterprises and they prohibited any interstate transportation of tickets to include the use of the United States Postal Service to mail tickets. The second, and fatal, blow was dealt by the combined strength of the Anti-Lottery League, clergy and reform-minded citizens who fought with the zeal of fanatics, finally exterminating The Serpent at the polls. With an opposing public opinion voting at the gubernatorial election against extension of the Louisiana Lottery Company's charter, The Serpent died when its charter expired twenty-five years after its inception.
In spite of lottery reform, with lotteries virtually legislated from existence, gambling thrived in the United States. The American dream for quick riches and an easy life did not wane. On the contrary, the pent up demand for lottery playing had to find an outlet. Policy betting popular in the nineteenth century, although illegal, ignited with renewed interest and crossed into the twentieth century spreading like a brushfire. The stock market crash of 1929 and the subsequent Great Depression had no impact on slowing the fires of greed. In fact, increased hard times stimulated players to gamble as a means to "win" themselves out of their impoverished circumstances. Foreign lottery tickets were mailed illegally into the United States and bought up by the millions. Bolita, an illegal numbers game, was operated by the Mafia ("Syndicate") who gained protection from prosecution by entering into profit-sharing arrangements with politicians and police officials. So, gambling flourished. According to an opinion poll conducted in 1940, 54% of American adults gambled, the most common betting being lotteries; 24% church operated, as Bingo games, and 8% Mafia operated numbers.
As the tide flows between gambling and reform history is sure to repeat itself over and over again so long as human nature remains basically the same. The same time-worn arguments will be heard. Lottery advocates say to legalize the numbers game into a state run operation so that proceeds, instead of being channeled into private hands of illegal operators, may be used for humanitarian reasons. The opposition exclaims that the lottery constitutes a regressive tax since a lottery program earns revenues from those least able to pay. Lottery proponents counter by claiming that people are already paying such a tax to the Mafia. Hence, the reasoning is to legalize numbers, compete with the Mafia, and let the Government grab its share of the take. The conservative puritans fight back claiming that the lust for money and the reckless pursuit of it are undermining the Nation's character. The volley between morality and liberality continues. In the end, however, the determining argument will likely be financial. States needing the money, and being in a position to enact laws, will echo and likely sway the sentiments of the people, in order to fill their States' coffers with easy money.
In 1963 the first domino fell when the State of New Hampshire authorized the first lottery in modern times. Since then many other states have followed suit. It is interesting to note that the most successful lotteries have been those patterned most closely after the numbers game which, when illegal, was once termed "an audacious-swindle because the odds were so great against the players."
The history of lotteries is fascinating. More important, however, is the light this history sheds upon the real nature of lotteries. Contrary to the image portrayed by the advertising media blitz, lotteries are not the innocent fun games that they are promoted to be as you will more fully appreciate when you read the next two chapters. I hope that reading this book will broaden your perspective and place you into the psychology of "opponent" versus the State Lottery Office. The lottery game is a crafty game indeed! Do not underestimate your adversary. The purpose of this book is to provide you with full knowledge about lotteries so that you have a realistic understanding that you are still playing against "The Serpent" which has not been exterminated after all.
(Note: I will be posting additional excerpts from J.P. Allenbright's book in the near future. So please check back.)
© 1988 & 2004 by J.P. Allenbright. All Rights Reserved