A lottery is a game in which tokens are sold and prizes awarded to those who draw winning numbers in a random drawing. Traditionally, state lotteries are sponsored by the government as a means of raising funds. However, the lottery is often criticized for encouraging compulsive gambling and regressively impacting lower-income groups. Nevertheless, the lottery has continued to grow in popularity, especially among convenience stores and other retail outlets. It has become a staple of American popular culture.
Since New Hampshire began the modern era of state lotteries in 1964, states have followed remarkably similar paths in establishing and operating their lotteries. In general, a state legislates its monopoly; establishes a public agency or corporation to run the lottery (instead of licensing a private firm in return for a share of the profits); begins operations with a modest number of relatively simple games; and then progressively expands its offerings.
The idea of making decisions and determining fates by the casting of lots has a long history in human society, including several instances cited in the Bible. But the first recorded lotteries to distribute prize money for material gains were held in the Low Countries in the 15th century, to raise money for town repairs and assistance for the poor.
The modern lottery is a classic case of the process by which public policy is made, piecemeal and incrementally, with little regard for the overall social and economic implications of each decision. State officials quickly find themselves with policies and dependencies they can do little to change, even when they are confronted with evidence of their harmful effects.
