Lottery

A competition based on chance in which numbered tickets are sold and prizes given to the holders of numbers selected at random; a form of gambling, often used as a means of raising funds.

Lotteries are a popular source of state revenue and public-service financing. In most cases, the government creates a state agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a share of the profits); begins operations with a modest number of relatively simple games; and, due to constant pressure for additional revenues, progressively expands the lottery in size and complexity, particularly by adding new games.

Although the casting of lots for making decisions and determining fates has a long history in human society, modern public lotteries began in the 19th century. Lotteries are now operated in all 50 states and in dozens of other countries. In addition to generating billions in revenue for state governments, they also promote responsible public spending and provide a forum for the debate on important social and political issues.

Although state lotteries are promoted as a way to alleviate the burden of government deficits, critics focus on their role in the promotion of gambling and the alleged regressive impact they have on lower-income communities. They also raise questions about the role of a government agency in running a lottery at cross-purposes with other, more important, public needs. Despite these issues, the lottery is a powerful tool for public finance and a popular source of entertainment.