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The impact of the aggressive marketing is especially profound on lower-income Black and Hispanic populations. Government reliance on gambling funds also puts pressure on lotteries to pursue “new marketing, glossier colors on the scratch tickets, whatever it may be to get people to keep coming, because otherwise the numbers go down,” said Les Bernal, national director of Stop Predatory Gambling, a nonprofit advocacy group based in Washington, D.C. John Mills, a Republican who sponsored the bill, wrote in an email.
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“It troubles me how the state promotes gambling while at the same time running ads warning people about opioids, meth, tobacco and every other addictive habit people may be susceptible to,” state Rep. It failed to get out of committee after a state official testified it would reduce the flow of lottery money for education spending by $1 million. The conflict of interest has hindered efforts to rein in advertising, such as a 2020 bill that a South Dakota legislator introduced to ban lotteries from promoting their games over concerns they were addictive. That leaves oversight of advertising up to the state legislatures that depend on lottery revenue to help balance their budgets. “The FTC does not regulate state lotteries because they are regulated at the state level, but the most important part is that we do not regulate them because they are not interstate commerce,” a commission spokesperson said. As state agencies, they are exempt from Federal Trade Commission regulations that prohibit misleading and deceptive advertising. That’s not a statistic the lotteries advertise, and they don’t have to. For many, the losses add up to thousands, even tens of thousands, of dollars over time. For every dollar players spend on the lottery, they will lose about 35 cents on average, the data shows. But behind that success are millions of people like Constancia.