Clary-GoldenTicket-2017

Golden Ticket: State-Run Lotteries Topple Illegal Numbers Rackets

Introduction to Lotteries and Their Cultural Impact

  • Slogan: "All you need is a dollar and a dream" (New York Lotto, 1980s-90s).

  • In urban centers, "playing the numbers" was a significant aspect of life, employing thousands as runners, bankers, etc.

  • Bets could be as low as a penny, with significant payouts highlighting the dreams associated with gambling.

Dream Books and Folklore

  • Players used "dream books" to interpret dreams into lottery numbers.

  • Examples of dream interpretations:

    • Snake: good luck

    • Harp: play 570

    • Tractor: play 647

  • Events influenced betting, such as Will Rogers' death prompting a surge in bets on 7-10-11.

Historical Context of Lotteries in America

  • Early lotteries (colonial era) supported community projects, e.g., roads, schools.

  • Prominent figures like Benjamin Franklin supported lotteries for civic projects.

  • Lotteries were local affairs, overseen by respected community members.

Transition and Corruption of Lotteries

  • Shift to professional management led to corruption, with excessive ticket sales and rigged draws.

  • Legislative investigations exposed rampant fraud within the lottery system.

  • By 1860, many states prohibited lotteries due to corruption and financial mismanagement.

Louisiana State Lottery Company

  • In 1868, Louisiana legalized a state lottery, leading to widespread corruption and political influence.

  • The lottery expanded to every state, with significant amounts collected.

  • Corruption included bribery of state officials, with the lottery known as the "Octopus" for its influence.

Fall of the Louisiana State Lottery

  • In the 1890s, anti-lottery sentiment grew, culminating in legislation banning lotteries at the federal level.

  • The Anti-Lottery League successfully campaigned against the Louisiana Lottery, leading to its demise by 1907.

Emergence of Illegal Numbers Games

  • Abandoned by legal lotteries, illegal "policy" games thrived in urban neighborhoods, targeting the poor.

  • These games provided a feeling of control, allowing players to pick numbers without a minimum bet requirement.

  • Operators established a robust network similar to the former lottery infrastructure, leading to police corruption and collusion.

Corruption and Policymaking

  • Police received payments from illegal operators to protect their operations.

  • Corruption was rife, with documented payments made to police and political figures.

  • Al Adams, a notorious "policy king," controlled illegal gambling from the late 1800s to the early 1900s, exploiting neighborhood loyalty.

Numbers Rackets and Racial Dynamics

  • Numbers operations employed thousands and were often seen as community benefactors.

  • Organizers built loyalty through community investment, showcasing both the negatives of gambling and the positives of economic support.

  • The transformation and dynamics of race played a role, with many successful operations led by black entrepreneurs.

Legalization of Lotteries in the 20th Century

  • The illegal operations' profitability led to renewed interest in legal lotteries as a means to regulate and tax gambling.

  • In the 1960s, states began to explore legal lotteries as a means to generate revenue and diminish illegal gambling's appeal.

  • New Hampshire established its first legal lottery in 1964, followed by other states like New York and New Jersey.

Innovations in State Lotteries

  • Introduction of scratch-off tickets and betting flexibility increased the lotteries' popularity.

  • The advent of multi-state lotteries (e.g., Powerball) created immense jackpots, attracting participation.

  • By the late 20th century, lotteries became a prominent source of state revenue despite concerns about their impact on low-income populations.

Current Landscape of State Lotteries

  • Lotteries now account for billions in sales, with funds primarily directed towards education but contributing little to overall state budgets.

  • Increased marketing efforts target low-income communities, raising ethical concerns about exploitation.

  • The ongoing challenge for state-run lotteries is to compete with the allure of illegal numbers games and maintain public confidence.