The lottery is a state-run form of gambling, in which players purchase tickets to win prizes based on random chance. A prize can be cash or goods. The concept is familiar to most Americans, and it is popular in many states. However, there are important differences between state lotteries and private gambling. Most state lotteries are not run as businesses, but as governmental agencies. The governmental nature of lotteries raises important questions about whether they are serving the public interest.
Historically, the American lottery has been a remarkably successful public policy innovation, raising vast amounts of money for a variety of purposes. But the public support for the lottery has been uneven, a fact that should prompt states to carefully consider the social costs and benefits of this public activity.
At the outset of the Revolutionary War, Congress turned to lotteries to raise money for a wide range of projects, including the colonial army and its supplies. Those early lotteries were little more than traditional raffles, with the public buying tickets for a drawing at some future date—often weeks or months away. In a surprisingly short time, innovations began to change the industry. During the 1970s, lotteries expanded to include games that allowed participants to buy tickets for a smaller amount of money and receive a prize immediately. These new types of games lowered the prize levels and raised the odds of winning. But they also increased the overall number of tickets sold.
Today, most state lotteries offer an impressive array of different games. Some offer instant prizes, while others require players to pick a group of numbers that will be matched by machines. The most common game involves choosing six numbers from a range of 1 to 50, although there are some with fewer or more numbers. Some states have even used the lottery to award subsidized housing units and kindergarten placements at certain schools.
The message that state lotteries send is that playing is fun and that you should feel good about supporting the state by purchasing a ticket. But this message is aimed at a population that skews disproportionately low-income, less educated, and nonwhite. It is also important to remember that lotteries are a form of gambling, and gambling has been linked to a variety of problems.
The evolution of state lotteries is a classic case of public policy made piecemeal and incrementally, with decisions made by individual officials who often do not have a comprehensive view of the overall situation. As a result, the state is often saddled with policies and dependencies on revenues that it can do very little to change. This is a significant problem that needs to be addressed before lottery expansion continues in other states. The question is not simply whether lotteries are promoting gambling, but whether it is appropriate for government to promote gambling at all. Unless states are prepared to make major changes, the trend toward more and more lottery games will only increase the problems.