When someone bets more than they can afford on the lottery, it can hurt their family. They may not be able to buy food or clothing for their children or pay their rent. It’s a terrible situation.
Generally speaking, as a society we have decided not to indemnify them against their losses. The reasons include something the insurance companies call “moral hazard”. If we indemnify against their losses, we believe it will encourage them to wager more.
There are lots and lots of things that many people do not recognize are gambling but are. For example, every time someone commits a crime they are taking the risk of being apprehended and punished for it. It’s actually a pretty good gamble. In the United States clearance rates (the number of charges filed divided by the number of crimes reported) are pathetically, distressingly low.
In Japan the general view is that criminals are stupid because the clearance rates are so high.
But good risk or bad risk the problem is the gambler’s not the society’s. That includes the harm done to their children.
So it brings up a philosophical issue. Are criminals just plain bad people, good statisticians, victims of society………? If we raised penalties would it have an effect on crime?
Most people sure do seem to react to money or incarceration. Some seem not to react to either.
Statistically. most are just YOUNG people, prone to impulsive behavior, if caught and incarcerated,it becomes a way of life.
It needs to be widely recognized that buying health insurance, instead of food or education for your kids, is a bad gamble that you will get sick.