Lottery is a game of chance in which tokens or tickets are sold and the winning token is selected by drawing. The prizes may be cash or goods. In a more general sense, it also refers to any system in which prize money or other valuable property is distributed by chance: a commercial promotion requiring payment of a consideration; military conscription; the selection of jury members; and so forth.
In colonial America, many public projects were financed by lotteries, including canals, bridges, roads, churches, schools, and colleges. The lotteries also provided an important source of revenue during the French and Indian Wars.
Today’s state lottery systems are typically run as businesses whose primary goal is maximizing revenues through the sale of tickets. In order to attract customers, they promote the idea that the lottery is a “game” that is fun and that players should take it lightly. This coded message obscures the fact that a large percentage of ticket buyers spend a substantial portion of their incomes on tickets.
State officials often argue that lotteries provide an invaluable source of “painless” revenues, which can be used to fund a variety of programs without raising taxes or cutting other state budget items. In practice, however, state lotteries typically expand dramatically after their inception and then level off or even decline. This has led to the introduction of new games in an attempt to sustain or increase revenues. Moreover, state officials often find themselves at cross-purposes with the general public when attempting to manage this business.