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Opinion
- Asep Haryono | National Lottery Revenue: Voluntary Tax or Moral Dilemma - Powered by Blogger
If a country runs a national lottery, do you think the revenue from it can be considered a form of tax and used to support national development of the country themselves?
The idea of treating national lottery revenue as a form of tax is interesting, but it’s not quite the same as traditional taxation. Taxes are mandatory payments imposed by the government, while lottery participation is voluntary you choose whether to buy a ticket or not.
That said, in practice, lottery revenue often acts like a “voluntary tax,” especially because many participants may not realize how much they contribute over time.Many governments channel lottery proceeds into public projects, such as education, sports programs, cultural initiatives, or infrastructure development.
Stack of Money of Indonesia
This can help supplement national budgets without directly raising taxes. However, the fairness of this approach is sometimes debated. Critics argue that lotteries can disproportionately affect lower-income individuals, who may spend a larger share of their income on tickets, effectively creating a regressive funding source.
If managed transparently and responsibly, lottery funds can indeed support national development building schools, funding healthcare, or improving public services. The key is accountability: ensuring that the money is used for clear, beneficial purposes and not lost to inefficiency or corruption. So, while it’s not technically a tax, it can function similarly in raising government funds for the country’s growth
"There are over 100 countries globally possibly between 100 and 180 that conduct national (state-run or state-sanctioned) lotteries used as a source of revenue by governments to support national development, public services, or charitable causes.
In the 1980s, PORKAS and SDSB were both National lottery programs conducted by The Republic of Indonesia that became quite famous (and controversial). Sumbangan Dana Sosial Berhadiah (Social Contribution with Prizes) and Kupon Porkas Sepakbola (Porkas Football Coupon). PORKAS was Criticized by religious groups and anti-gambling advocates, leading to its closure in 1987. SDSB Officially banned in 1993 by President Suharto"
You may read - Indonesia's Lottery Of The Past.
The morality aspect of a national lottery
This is where things get more complicated . For many religions, including Islam and some branches of Christianity, gambling is considered morally wrong because it’s seen as earning money from chance rather than productive work. In Islam, for example, maysir (gambling) is explicitly prohibited, and lotteries fall into that category. For believers, buying a lottery ticket could be viewed as violating religious principles, no matter how the revenue is used.
From a moral standpoint, even in secular societies, critics argue that state-run lotteries can exploit human vulnerability. They often market the dream of instant wealth, which can be particularly tempting for those struggling financially sometimes leading to addiction or poor financial decisions. This raises the question: is it ethical for a government to profit from its citizens’ hopes and risks, even if the money funds public projects?
On the other hand, supporters claim that since participation is voluntary, it respects personal choice. They argue that as long as the lottery is regulated, transparent, and its revenue is used for the public good, it can be morally defensible in a pluralistic society. Ultimately, morality here depends on one’s worldview religious, cultural, and personal beliefs heavily shape whether lotteries are seen as acceptable or not.
The idea of treating national lottery revenue as a form of tax is interesting, but it’s not quite the same as traditional taxation. Taxes are mandatory payments imposed by the government, while lottery participation is voluntary you choose whether to buy a ticket or not.
That said, in practice, lottery revenue often acts like a “voluntary tax,” especially because many participants may not realize how much they contribute over time.Many governments channel lottery proceeds into public projects, such as education, sports programs, cultural initiatives, or infrastructure development.
This can help supplement national budgets without directly raising taxes. However, the fairness of this approach is sometimes debated. Critics argue that lotteries can disproportionately affect lower-income individuals, who may spend a larger share of their income on tickets, effectively creating a regressive funding source.
If managed transparently and responsibly, lottery funds can indeed support national development building schools, funding healthcare, or improving public services. The key is accountability: ensuring that the money is used for clear, beneficial purposes and not lost to inefficiency or corruption. So, while it’s not technically a tax, it can function similarly in raising government funds for the country’s growth
In the 1980s, PORKAS and SDSB were both National lottery programs conducted by The Republic of Indonesia that became quite famous (and controversial). Sumbangan Dana Sosial Berhadiah (Social Contribution with Prizes) and Kupon Porkas Sepakbola (Porkas Football Coupon). PORKAS was Criticized by religious groups and anti-gambling advocates, leading to its closure in 1987. SDSB Officially banned in 1993 by President Suharto"
You may read - Indonesia's Lottery Of The Past.
The morality aspect of a national lottery
This is where things get more complicated . For many religions, including Islam and some branches of Christianity, gambling is considered morally wrong because it’s seen as earning money from chance rather than productive work. In Islam, for example, maysir (gambling) is explicitly prohibited, and lotteries fall into that category. For believers, buying a lottery ticket could be viewed as violating religious principles, no matter how the revenue is used.
From a moral standpoint, even in secular societies, critics argue that state-run lotteries can exploit human vulnerability. They often market the dream of instant wealth, which can be particularly tempting for those struggling financially sometimes leading to addiction or poor financial decisions. This raises the question: is it ethical for a government to profit from its citizens’ hopes and risks, even if the money funds public projects?
On the other hand, supporters claim that since participation is voluntary, it respects personal choice. They argue that as long as the lottery is regulated, transparent, and its revenue is used for the public good, it can be morally defensible in a pluralistic society. Ultimately, morality here depends on one’s worldview religious, cultural, and personal beliefs heavily shape whether lotteries are seen as acceptable or not.
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