Lottery is a game in which prizes, usually money or goods, are allocated by drawing lots. It is also the name of a state-sponsored gambling game.
Lotteries were popular in colonial America and are still widely used throughout the world to raise funds for everything from paving streets to building churches, schools and libraries. But critics claim that lotteries promote addictive gambling behavior, are a major regressive tax on lower-income groups, and generally work at cross-purposes with the state’s duty to protect the public welfare.
The word lottery comes from the Dutch noun lot “fate” or, more literally, a “stake of fate.” Historically, a lottery was an organized way for a government to distribute money for any purpose.
Most states have their own state-sponsored lotteries. Some lotteries are run by the state itself, while others are operated by private companies or nonprofit organizations. State-sponsored lotteries are a classic case of public policy made piecemeal and incrementally, with little overall oversight. As a result, the lottery often develops extensive and specific constituencies, such as convenience store operators (who pay high commissions to lottery vendors); suppliers of products like scratch-off tickets; teachers (in those states in which a portion of revenue is earmarked for education) and state legislators (who quickly become accustomed to a new source of cash). In addition, the development of a lottery creates special interest pressures that are hard to resist. These can distort the way lottery decisions are made.