Monday, June 04, 2007

On Lotteries and Kerala

In 2005, when Oommen Chandy was the Chief Minister, there was a huge campaign against Online and Other-State Lotteries. If I recollect the incidents correctly, the Government first tried to ban online lotteries, and then tried to ban all the other-state lotteries. The move wasnt approved by the Supreme Court and thus, there were two options
  • Allow uncontrolled operation of lotteries in the state OR
  • To ban all lotteries

Quite obviously, the government thought that Option 2 was the way to go. And thus came the ban on lotteries in the state (Ref: Kerala Bans All Lotteries) in early 2005. I thought that it was a positive move (as lotteries promote the habit of speculative investment among the masses and hence has to be discouraged), and that the LDF and other organizations would welcome the decision. But, that was not what happened.

And there were reports on the Effects of the Lottery Ban

Indeed, some consequences of Lottery ban were bad, although expected. For instance, the Kerala State Lottery which had started in 1967 (under the EMS Government) had resulted in thousands of people (mostly handicapped people) earning their daily bread out of it. The concern was genuine, what would those people do? But, I expected that the LDF would have been more constructuve and would have come up with recommendations for alternative sources of employment to the handicapped.

Let me draw your attention once again to one of Achuthanandan's reasons for protesting against the lottery ban. That it causes an annual loss of 100s of crores to the Government. I can hardly think of a person like him talking in those lines. The customers of the Kerala State Lottery are mostly from the lower strata of the society, as those are the people who easily get attracted to these forms of gambling (I have seen long queues of autorickshaw drivers before the online lottery office at Edappally Toll). Let us assume that there are around 50 lakh people who buy lotteries. Thus, the government is in effect getting 200 rs extra from those people by getting them to indulge in gambling. Thus, for me, the lottery ban is a gain of 100 crores to the lottery buyers which include the autorickshaw drivers and the like (which infact, is a wonderful thing to happen).

And at last, the Kerala Lotteries resumed functioning :(

Let me draw your attention to what lotteries are, and what their effects are, on the society. Although the undesirable effects of lotteries are quite evident and obvious, I use three articles to pull information about lotteries from:

  • Wikipedia: A lottery is a popular form of gambling which involves the drawing of lots for a prize. Lotteries are most often run by governments or local states and are sometimes described as a regressive tax, since those most likely to buy tickets will typically be the less affluent members of a society. The astronomically high odds against winning have also led to the epithets of a "tax on stupidity", "math tax" or the oxymoron "voluntary tax" (playing the lottery is voluntary; taxes are not). They are intended to suggest that lotteries are governmental revenue-raising mechanisms that will attract only those consumers who fail to see that the game is a very bad deal. Indeed, the desire of lottery operators to guarantee themselves a profit requires that an average lottery ticket be worth substantially less than what it costs to buy. After taking into account the present value of the lottery prize as a single lump sum cash payment, the impact of any taxes that might apply, and the likelihood of having to share the prize with other winners, it is not uncommon to find that a ticket for a typical major lottery is worth less than one third of its purchase price.The fact that lotteries are commonly played leads to some contradictions against standard models of economic rationality. However, the expectations of some players may not be to win the game, but the thrill and indulgence in a fantasy of possibly becoming wealthy become the goal. Even ignoring the thrill factor, there is the theoretical possibility that the purchase of a lottery ticket could represent a gain in expected utility, even though it represents a loss in expected monetary value, thus making the purchase a rational decision. Insurance, for instance, represents negative expected monetary value but is not considered to be a tax on stupidity because it is generally believed to deliver positive expected utility to the individual.
  • Lenin on Lotteries: With their honeyed words they deceive the peasant in the same way as people are deceived by a lottery. I shall tell you what a lottery is. Let us suppose I have a cow, worth 50 rubles. I want to sell the cow by means of a lottery, so I offer everyone tickets at a ruble each. Everyone has a chance of getting the cow for one ruble! People are tempted and the rubles pour in. When I have collected a hundred rubles I proceed to draw the lottery: the one whose ticket is drawn gets the cow for a ruble, the others get nothing. Was the cow “cheap” for the people? No, it was very dear, because the total money they paid was double the value of the cow, because two persons (the one who ran the lottery and the one who won the cow) gained without doing any work, and gained at the expense of the ninety-nine who lost their money. Thus, those who say that lotteries are advantageous to the people are simply practising deceit on the people. Those who promise to deliver the peasants from poverty and want by means of co-operatives of every kind (societies for buying cheap and selling profitably), improved farming, banks, and all that sort of thing, are deceiving them in exactly the same way. Just as in a lottery where there is one winner and all the rest are losers, so it is with these things: one middle peasant may manage to get rich, but ninety-nine of his fellow peasants bend their backs all their lives, never escape from want, and even sink more deeply into poverty.
  • Truth About Gambling: Lottery is one of the most senseless and speculative "investments" on Earth. It promotes the spending of real money for a highly elusive product (the win). It is deceitful in that the real product delivered reportedly 14 million times to one (14,000,000:1) is FALSE HOPE. It encourages the diversion of capital from reasonable investment vehicles which yield reasonable returns to a senseless investment which reportedly has been mathematically calculated to yield a significant return only once out of every 14 million times. From a local economic point of view, it has a highly negative multiplier effect. It promotes a harmful practice: unwise investing. It uses miseducation to promise education: People are encouraged to participate in this "investment" fraud, and are then told that the money gained from such an "investment" will be used to "educate" them. Lottery siphons money from the community but provides neither a comparable good nor service in return. (An honest tax could better benefit the community and would be more sound in moral, economic and psychological character. A tax called a tax is an honest tax. A tax called a chance is a fraud). It promotes psychological instability by encouraging individuals to commit real, hard-earned assets to mostly unreal, highly improbable trade activities. To grant a fair return to all would kill the lottery. It lives and thrives by consuming the hard-earned resources of losers. Its very life depends on the losses of many. Its best customers must be losers. It robs so many to pay so few. If it is a tax it is an unfair tax because it succeeds only in collecting from the gullible. Its negative impact is doubled: 1. It (by siphoning funds) weakens the regular economy; and 2. It creates a wholly defective side economy. It's one of the worse budgeting lessons a child could ever be taught. It exploits the weak and seeks to weaken the strong. It destroys soundness.

Given all these effects of lotteries, the LDF can be expected to be "lottery-haters". But, what has been happening in Kerala is just the opposite. To cite a few examples,

  • EMS Government in 1967 started the Kerala State Lottery, which declares on its web page "Indiayil Aadyam, Ennum Munnil"
  • The LDF protested against the Lottery Ban by the UDF in 2005
  • The Kerala Sports Super Bumper was launched by the LDF in 2007 to mobilize 200 crores for infrastructural developments at the Grass-root levels of the state

How the Kerala State Lottery is presented to the people is another interesting thing to note:

  • Kerala State Lotteries webpage has the following text in it (It talks about development, the prize money, development, poverty and what not.. bah): Have you ever noticed a Lottery agent walking through the road with lottery tickets in his/her hand? Well we may not notice him/her at first. But think, he too plays his part in re-sourcing money for the development of roads, bridges, hospitals, schools and much more. Channelising ones money for the development of the state is the success behind the Department of Lotteries. More than that, it is the sole income-source for many a downtrodden public in the society. Today, with more than 35,000 authorised agents and over 100,000 retail sellers; spanning over 14 districts, it is a major benefactor to the development of the state, self-employment for the poor and the common, and poverty eradication. The lottery department gains importance in this context, with much opportunity in front of it to conquer. Its social commitment towards the poor and needy hasn’t brought down the amount of prize money it disburses. The department gives away lakhs of prizes a week, through its four weekly lotteries and through its six bumper lotteries.
  • Description about Kerala Lottery and it's history talks about alleviating poverty through lotteries!!!!
  • The Onam Bumper Lottery has its caption as: Aishwaryapoornamaaya Thiruvonathe Varavelkku, Onam Bumper Lotteryil Pankedukku!!!!

Hope we do start realizing soon that Lottery is an evil and that Kerala would become a Lottery-free state sometime soon.

26 comments:

Anonymous said...

This is a good article.
News from "Gods Own Country" - Kerala

Anonymous said...

Good day !.
might , perhaps curious to know how one can reach 2000 per day of income .
There is no initial capital needed You may begin to receive yields with as small sum of money as 20-100 dollars.

AimTrust is what you haven`t ever dreamt of such a chance to become rich
AimTrust represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with affiliates around the world.
Do you want to become a happy investor?
That`s your choice That`s what you desire!

I`m happy and lucky, I started to take up income with the help of this company,
and I invite you to do the same. If it gets down to select a correct companion utilizes your funds in a right way - that`s it!.
I earn US$2,000 per day, and my first investment was 500 dollars only!
It`s easy to get involved , just click this link http://eluzilihe.lookseekpages.com/finibopo.html
and go! Let`s take our chance together to get rid of nastiness of the life

Anonymous said...

Good day !.
You may , probably very interested to know how one can manage to receive high yields .
There is no initial capital needed You may start to receive yields with as small sum of money as 20-100 dollars.

AimTrust is what you thought of all the time
AimTrust represents an offshore structure with advanced asset management technologies in production and delivery of pipes for oil and gas.

Its head office is in Panama with affiliates everywhere: In USA, Canada, Cyprus.
Do you want to become a happy investor?
That`s your choice That`s what you wish in the long run!

I`m happy and lucky, I started to get real money with the help of this company,
and I invite you to do the same. If it gets down to choose a correct partner who uses your savings in a right way - that`s AimTrust!.
I earn US$2,000 per day, and my first investment was 500 dollars only!
It`s easy to start , just click this link http://xylyvezuxo.ibnsites.com/aryquku.html
and go! Let`s take this option together to feel the smell of real money

Anonymous said...

Hi!
You may probably be very interested to know how one can manage to receive high yields on investments.
There is no need to invest much at first.
You may commense earning with a sum that usually is spent
on daily food, that's 20-100 dollars.
I have been participating in one company's work for several years,
and I'll be glad to share my secrets at my blog.

Please visit blog and send me private message to get the info.

P.S. I earn 1000-2000 per day now.

http://theblogmoney.com

Anonymous said...

Good day, sun shines!
There have been times of hardship when I didn't know about opportunities of getting high yields on investments. I was a dump and downright stupid person.
I have never thought that there weren't any need in large starting capital.
Now, I'm happy and lucky , I begin to get real money.
It gets down to select a proper companion who utilizes your funds in a right way - that is incorporate it in real business, parts and divides the income with me.

You may ask, if there are such firms? I'm obliged to tell the truth, YES, there are. Please be informed of one of them:
http://theblogmoney.com

Anonymous said...

Good day, sun shines!
There have been times of hardship when I didn't know about opportunities of getting high yields on investments. I was a dump and downright stupid person.
I have never imagined that there weren't any need in big initial investment.
Now, I feel good, I begin take up real money.
It gets down to choose a proper companion who utilizes your money in a right way - that is incorporate it in real deals, parts and divides the income with me.

You may get interested, if there are such firms? I have to answer the truth, YES, there are. Please be informed of one of them:
http://theinvestblog.com [url=http://theinvestblog.com]Online Investment Blog[/url]

Anonymous said...

Glad to materialize here. Good day or night everybody!

Sure, you’ve heard about me, because my fame is running in front of me,
my parents call me Nikolas.
Generally I’m a venturesome analyst. recently I take a great interest in online-casino and poker.
Not long time ago I started my own blog, where I describe my virtual adventures.
Probably, it will be interesting for you to read my travel notes and reports about winnings and losses on this way.
Please visit my blog. http://allbestcasino.com I’ll be glad would you find time to leave your opinion.

Pramod said...

Good Article.

Penis Enlargement Pills said...

Really you have done great job,There are may person searching about that now they will find enough resources by your post.I like this blog..

video sreedhar said...

buy online kerala lotterry from kerala-lotteries.blogspot.com

Anonymous said...

Have you ever considered creating an e-book or guest authoring on other sites?
I have a blog based on the same information you discuss and would love to have you share some stories/information.
I know my audience would enjoy your work.
If you are even remotely interested, feel free to shoot me an
e-mail.
Check out my weblog :: Dreambox

questnaveen said...

it is a genuine post and having very good description....
India's No 1 Local Search Engine


QuestDial

Anonymous said...

Asking questions are truly fastidious thing if you are not understanding something totally,
however this post offers pleasant understanding even.
Look at my web page :: click the next document

Anonymous said...

Hi there colleagues, how is all, and what you would like to
say concerning this post, in my view its genuinely amazing designed for me.


Feel free to surf to my web blog: best auto insurance companies in california

Anonymous said...

Hi, just wanted to say, I loved this blog post. It was
helpful. Keep on posting!

My homepage: buy facebook page likes

Anonymous said...

Thank you for the good writeup. It in fact was a amusement account it.
Look advanced to more added agreeable from you!
However, how could we communicate?

my website; cedarfinance

Anonymous said...

May I simply just say what a relief to discover a person that really understands what they are discussing online.
You definitely realize how to bring an issue to light and make it important.
More people have to look at this and understand this side of
the story. It's surprising you aren't more popular because you surely have the gift.


Here is my blog post: forex binary options

Anonymous said...

Hi there! This post couldn't be written any better! Reading through this post reminds me of my previous roommate! He continually kept preaching about this. I most certainly will send this post to him. Pretty sure he will have a very good read. I appreciate you for sharing!

My website; binary options demo account

Anonymous said...

What's Happening i'm new to this, I stumbled upon this I have discovered It absolutely helpful
and it has helped me out loads. I hope to contribute & aid
different users like its helped me. Great job.

my web page: cedarfinance.Com

Anonymous said...

With havin so much written content do you ever run
into any problems of plagorism or copyright violation?
My site has a lot of unique content I've either authored myself or outsourced but it looks like a lot of it is popping it up all over the web without my permission. Do you know any techniques to help prevent content from being stolen? I'd
truly appreciate it.

Feel free to visit my blog http://Www.Cedarfinance.com/

Anonymous said...

Your mode of describing everything in this piece of writing is really fastidious, every one can without difficulty understand it,
Thanks a lot.

My page: hidden cam sex

Anonymous said...

Hi would you mind stating which blog platform you're working with? I'm planning to start
my own blog soon but I'm having a difficult time selecting between BlogEngine/Wordpress/B2evolution and Drupal. The reason I ask is because your design seems different then most blogs and I'm looking for something unique.
P.S My apologies for being off-topic but I had to ask!


Feel free to surf to my homepage ... www.cfnmfever.net

Anonymous said...

Hello are using Wordpress for your site platform? I'm new to the blog world but I'm trying to get started
and set up my own. Do you require any coding expertise to make your own blog?
Any help would be greatly appreciated!

Visit my blog - Http://Www.Cuteteenporn.Net/Video/29647/Young-Teen-Play-With-Hard-Cock.Html

Anonymous said...

I visited various web sites however the audio feature for audio songs existing at
this web site is really superb.

Here is my page :: Sexygirlchat.Net

Anonymous said...

It's very easy to find out any matter on net as compared to textbooks, as I found this paragraph at this web site.

Here is my homepage - www.jnmassage.info

Anonymous said...

e cigarettes, electronic cigarettes, best electronic cigarettes, electronic cigarettes, smokeless cigarettes, e cigarette