By Eric Zanzucchi (@ericzanzucchi)
Monopolies, collusion, and price fixing are illegal in business. Laws were created to protect the consumer because businesses are ‘evil’. I’m cool with people who call businesses evil even though I don’t agree with it. Businesses are businesses and behave in certain ways to survive and thrive in the business world. It would be like calling a carnivorous animal evil for hunting and killing. Businesses need to behave a certain way in order to ensure the preservation of the business. Government is supposed to be there to create and enforce all these rules.
At some point as a country we decided that gambling was bad and casinos shouldn’t be near our children. Over time there have been tons of exceptions, but one of the things that can’t exist is an organized lottery.
UNLESS! It is run by a state government.
Because states have a monopoly on lotteries they don’t have to make their rules very fair. So they don’t. Typically only 50% of the money goes into the prize pool, which is robbery. If a casino in Vegas only paid out 50% they would go out of business within a week. Typical payouts in most forms of gambling are in the 90%s. If businesses ran lotteries there would be competition and payout rates would be way higher to lure in new players.
It really is like Animal Farm. The government makes the rules and reserves the right to be hypocrites. So if businesses are evil, then government is driving the Evil Bus.
P.S. I wonder what the Evil Bus looks like?