A competition based on chance, in which numbered tickets are sold and prizes (money or goods) are awarded to the holders of numbers drawn at random. Generally, people who buy a lottery ticket hope to win the grand prize—the jackpot. But a winning ticket also often brings smaller prizes, such as a car or a vacation. Some governments prohibit lotteries, while others endorse them or regulate them. A governmental agency may run the lottery or license private firms to do so.
Many states sponsor lotteries to generate revenue for public programs, including education and social services. But state lotteries have not proven to be an effective tool for generating tax revenues, and they are a source of controversy among policymakers and the general public. The debate over state lotteries raises fundamental questions about how best to promote gambling and what role government should play in encouraging it.
While the concept of drawing lots for decisions or fortunes has a long history, state-sponsored lotteries have only recently gained widespread acceptance in the United States and other developed nations. They have a particular appeal at times of economic stress because they allow citizens to avoid raising taxes or cutting public programs and instead contribute to a “public good” such as education.
Lottery games are a popular form of entertainment, and the average American spends about $100 on them each year. These expenditures come with important implications for society, particularly for poor and vulnerable groups. While the vast majority of Americans do not gamble on a regular basis, the fact that the lottery is a popular form of gambling reflects the pervasive belief in America that there is always a chance—however improbable—of becoming rich.
To be successful, lottery games must attract a broad group of players and maintain their popularity even when the economic outlook is good. They therefore must promote their image as a good thing and appeal to people’s sense of fairness. They must also promote their financial sustainability and integrity, as well as ensure that the proceeds from the games are spent fairly.
In order to do this, lottery officials must appeal to a variety of specific constituencies, including convenience store owners; the suppliers of the equipment and supplies needed for the games (heavy contributions by these suppliers to state political campaigns are commonly reported); teachers in those states in which lotteries are earmarked for educational purposes; and, perhaps most importantly, state legislators.
To win and retain support, lotteries must convince these groups that the proceeds from their games will improve a specific aspect of the public good—usually education, although health care is also frequently claimed as an important benefit. They must also communicate that the money they raise is significant compared to the cost of running the lottery, as well as how much they might have raised from taxes if not for the lotteries. This message must be delivered consistently to each group and be reinforced when the lottery is being promoted.