Revenue Raising Potential Of A National Lottery Is Unclear, Treasury Says.

Treasury has thanked James N. England of Splendora, Texas, for his letter suggesting the creation of a national lottery, but says the merits of using lotteries as a means of raising revenue is unclear.

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March 8, 1996

Mr. James N. England

Dear Mr. England:

[1] Thank you for your message to President Clinton suggesting the creation of a national lottery.

[2] The suggestion of a national lottery is a recurring one. To date, however, there is no clear consensus on the merits of using a lottery as a means of raising government revenue. First, Congress must decide whether the Federal government should promote what some may regard as unacceptable gambling activities. Second, because many states have lotteries, Congress would need to decide whether this type of activity should be left to the States. We would note that a review of lottery activities by States and other countries has shown that the net profits produced are often not as large as expected.

[3] Thank you again for writing.

Sincerely,

Jacqueline J. Wong