Lottery is a method of selecting prizes through chance. It has a long history, and has been used for many purposes, including allocating land in the Old Testament, choosing slaves in ancient Rome, and selecting winners of sporting events. It is also a popular means of awarding financial prizes. A person pays money to purchase a ticket, either in person or over the Internet, and has a chance to win a prize if enough of their numbers match those selected by a machine.
In modern times, a state may establish a lottery in order to raise money for a particular public purpose, such as building schools or roads. Lottery is often considered to be an alternative to more direct taxation of wealth or income. However, a lottery is still a form of gambling, and has a similar effect on the economy as other forms of gambling. The term lottery derives from a Latin word meaning “drawing lots.” It may refer to:
The lottery has been around for thousands of years. It has been used to award property, slaves, and even kingship. The first recorded state-sponsored lottery was established in England in 1612, and in colonial America lotteries played a significant role in financing both private and public ventures, such as roads, libraries, churches, canals, and even universities. George Washington organized a lottery in 1768 to finance a road across the Blue Ridge Mountains, and tickets bearing his signature became collectors’ items.
During the immediate post-World War II period, many states began lotteries in order to fund government services without creating onerous taxes on middle and working class families. The thinking was that by creating a game of chance and offering large prizes, people would be willing to gamble on their futures with small amounts of money.
State lotteries typically begin with a modest number of relatively simple games, and then expand in size and complexity over time. This expansion is due to the need to continually increase revenues. In addition, the introduction of new games keeps the lottery fresh for current customers and attracts a new audience.
Lottery revenue growth is rapid for the first few years after the launch of a new game, but then slows to a trickle. To maintain or grow revenues, lottery officials introduce a constant stream of new games and offer ever-larger prizes. This strategy may be effective in the short run, but it creates a dependency on erratic revenue streams that can be difficult to manage.
Most lotteries have extensive specific constituencies, including convenience store operators (who often sell tickets); lottery suppliers (heavy contributions to state political campaigns are regularly reported); teachers (in those states that earmark lottery revenues for education); and state legislators (who quickly become accustomed to the extra cash). A common message is that the lottery provides fun and excitement. This, combined with the perception that lottery games are a “small part” of a person’s overall gambling activity, obscures the regressive nature of the industry and its effect on lower-income families.