Lottery is a competition based on chance, in which numbered tickets are sold and prizes (usually money) are given to the holders of numbers drawn at random. It is often used as a means of raising funds for a public project. The word is derived from the Latin term lotilegium, meaning ‘casting of lots’.
State-sponsored lotteries are now found in almost every state in the United States. They are the most popular form of gambling, with sales of tickets reaching nearly US$50 billion per year. In the United States, lottery play is highly concentrated; as much as 70 to 80 percent of all ticket purchases come from the top 20 to 30 percent of players. The playing population is also disproportionately low-income, less educated, and nonwhite. Some experts attribute the growth of lotteries to a newfound materialism that asserts anyone can get rich with enough effort and luck. Others point to growing inequality and anti-tax movements that led lawmakers to seek alternatives to taxation.
The history of lotteries is a fascinating case study in the evolution of state policy. In almost all cases, the introduction of a state lottery has followed remarkably similar patterns: The State legislates a monopoly for itself; establishes a state agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a portion of the profits); begins operations with a modest number of relatively simple games; and, under pressure to increase revenues, progressively expands its scope, particularly in the form of adding new games.
Ultimately, the popularity of the lottery is due in large part to the fact that people plain old like to gamble. It’s sort of an inextricable human impulse. In a time of economic turmoil, with stagnant wages and declining social mobility, people turn to the lottery for hope. They feel that, if they can only win a few dollars, it might be their only shot at getting ahead.
The question is whether the lottery is appropriate to perform this function in the public interest. The answer depends on the extent to which it promotes compulsive gambling, regresses against lower-income groups, and other problems of public policy.
Aside from these general concerns, there are a variety of specific issues that must be addressed when running a lottery. One important consideration is the size of the jackpot, and how to distribute it. In addition, a lottery must decide whether to offer annuity or lump-sum payouts, and whether to allow its winners to keep their names anonymous. Finally, the lottery must be prepared to deal with a variety of other unexpected challenges that might arise in the course of a major draw. Fortunately, there are a variety of resources available to help with these and other related matters.
