Lottery is a type of gambling in which prizes, such as property, money or services, are awarded by chance. In some cases, such as keno and video poker, payment of a consideration (money or goods) is required to participate in the lottery; this requirement distinguishes it from other forms of gambling, such as slot machines, which operate on a mechanical basis with no human intervention. Regardless of the definition, state-sponsored lotteries have become a major source of revenue for many states, and they enjoy broad public approval.
The concept of determining the distribution of property or other valuables by lot is ancient, with some early references in the Old Testament, where Moses is instructed to take a census of Israel and distribute land by lot. Later, Roman emperors used lots to give away slaves and other property during Saturnalian feasts.
In colonial-era America, lotteries were a common form of fundraising for both private and public projects. They were used to finance building streets, constructing wharves, and even founding universities. Benjamin Franklin ran a lottery to fund his militia company, and John Hancock organized a lottery to build Boston’s Faneuil Hall. Lotteries also funded the construction of buildings at Harvard and Yale, and George Washington ran a lottery to finance a road over a mountain pass in Virginia.
Modern lotteries are run as businesses, with an emphasis on maximizing revenues through advertising and other promotions. While the public’s desire for winning is one reason for this success, critics argue that this business model is at cross-purposes with the larger public interest. By promoting gambling, state lotteries can have negative consequences for poor people and problem gamblers. They also can undermine public morals and contribute to corruption.
Despite this criticism, many states continue to adopt and promote lotteries. A key argument used to justify lotteries is that they provide “painless” revenue, allowing voters and politicians to spend more without the need for tax increases or cuts in other areas of public concern. This argument is a powerful one during periods of economic stress, but studies show that the popularity of lotteries is not related to a state’s objective fiscal condition.
In addition, state lotteries develop extensive specific constituencies, including convenience store operators (lottery sales are often a significant source of their revenue); lottery suppliers (heavy contributions by these entities to state political campaigns are regularly reported); teachers (in states in which the proceeds from the lottery are earmarked for education); and state legislators, who quickly learn to depend on the revenues from lotteries.
In addition, there is evidence that lottery play varies by socio-economic group, with men playing more than women; blacks and Hispanics more than whites; and the young and the old playing less than those in middle age. Moreover, the percentage of those who play decreases as formal education levels increase, even though non-lottery gambling generally increases with educational level. Consequently, there is a growing chorus of critics who question the continuing viability of state-sponsored lotteries.
