What is a Lottery?

A lottery is a method of raising money in which a large number of tickets are sold and a drawing held for prizes. It is considered a form of gambling, although the prizes may be given away for some public or charitable purpose. Lotteries first appeared in Europe in the 15th century, when towns wished to fortify their defenses or aid the poor. Francis I of France introduced state-sponsored lotteries to help pay for municipal repairs.

In America, the modern state lottery began with New Hampshire in 1964. Since then, a total of 37 states have adopted lotteries. State lotteries have a long record of broad public approval. But they are also a source of intense controversy. Lottery supporters point to their value as a source of “painless” revenue, in which the public voluntarily spends money for the benefit of the government. Opponents argue that lotteries divert public resources from more pressing needs and encourage excessive spending.

State lotteries are run as businesses with a clear focus on maximizing revenues. To do this, they must promote themselves aggressively through television, radio and other forms of advertising. As a result, they create extensive and specific constituencies, such as convenience store operators (the usual vendors for the games); suppliers of equipment and services for the lottery; teachers in states that allocate lotto revenues to education; and state legislators, who quickly become accustomed to an additional source of tax dollars. The resulting dependence on lottery revenues has left few, if any, state governments with a coherent policy on the subject.