Lottery:

A competition based on chance, in which numbered tickets are sold for the chance to win prizes. State-sponsored lotteries are common in Europe and the United States. The term “lottery” is derived from the Middle Dutch noun lot (“fate” or “accident”) and is believed to be a calque on the Middle French word loterie.

Throughout history, a wide range of activities and objects have been the subject of lotteries, including property distribution in ancient Rome; land grants by the English crown, kings of France, and the American colonies; and, from the 1820s onward, public-service projects such as bridge construction, schools, hospitals, and canals. In modern times, state lotteries have become especially popular. They are simple to organize, inexpensive, and attractive to the general public. Moreover, they enjoy broad public support, with more than 60 percent of adults in states with lotteries reporting playing at least once a year. Lottery supporters point out that proceeds are earmarked for specific, public-interest purposes, and that the games generate large sums of money without burdening taxpayers with onerous taxes.

Since New Hampshire introduced the first state lottery in 1964, 37 of the 50 states have now adopted them. Regardless of the differences in state histories and legal frameworks, lotteries tend to follow similar paths: the state legitimizes a monopoly for itself; establishes a government agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a cut of the profits); begins operations with a modest number of relatively simple games; and, under constant pressure to increase revenues, progressively expands its offerings.

The popularity of lotteries has been largely immune to the cyclical ups and downs in state governments’ fiscal health. Even during periods of severe fiscal stress, lotteries have garnered broad popular support if the proceeds are earmarked for education or some other public purpose. Moreover, research has shown that the public accepts state lotteries even when the objective fiscal conditions of the states are good, suggesting that lotteries have a strong reputation for enhancing public welfare.

Nonetheless, controversy over lotteries persists. Some critics focus on the alleged negative effects of state-sponsored gambling, such as its targeting of poorer individuals and its role in fueling problem gambling. Others argue that promoting gambling, no matter how well intended, runs counter to the core functions of government.

Another issue stems from the fact that, as businesses focused on maximizing revenues, lotteries must constantly introduce new games to maintain or increase revenues. This has fueled concerns that state lotteries are operating at cross-purposes with the public interest.