A competition based on chance, in which numbered tickets are sold and prizes are given to the holders of numbers drawn at random. Lotteries are especially popular in states where governments want to raise money for a particular cause, such as education. They are also sometimes used to distribute public services or benefits, such as units in a subsidized housing complex or kindergarten placements at a reputable school. In the latter case, critics argue that lottery games are simply a disguised tax on those who cannot afford to play.
The first state lotteries, as described in the town records of the Low Countries in the early 16th century, were primarily meant to raise funds for local purposes, such as building walls or town fortifications. Later, as their popularity grew, the lottery was often argued to be a painless alternative to raising taxes.
Today, almost all states operate a state lottery. The basic pattern is remarkably similar in every state: the state establishes a monopoly; hires a public agency or corporation to run the lottery (as opposed to licensing private firms in return for a share of the profits); begins operations with a modest number of relatively simple games; and, under pressure for additional revenues, progressively expands the scope and complexity of the lottery.
The expansion of the lottery has been fueled by a constant need to increase revenues, which in turn drives ever-increasing advertising expenditures. But studies suggest that, in addition to the obvious problems of problem gambling and social injustice, the lottery may also be serving as a kind of disguised tax on those who can least afford to play it.
