Research conducted in the U.S. on lotteries reveal that they contribute a miniscule amount to State general revenues, rank low in a list of tax sources, and prove an unreliable source of income. Using a case study of the New Jersey State lottery, legalized in 1970, this article argues that too much is expected of these gambling activities. In several States where revenues are earmarked for education, expenditures per pupil actually dropped. While lotteries seem to be a permanent fixture in society, government officials need to recognize their fiscal limitations and accept their responsibility to fund social and economic programs through progressive revenue-generating measures. 1 table, 4 notes, and 3 references