Lottery is a gambling game in which prizes are allocated by a random drawing. Prizes can range from small cash amounts to life-altering sums of money. Lotteries are often associated with gambling, but they can also be used in decision-making scenarios such as sports team drafts or allocation of limited medical treatments.
State governments have long used lotteries to raise revenue without having to increase taxes. In an anti-tax era, the lottery is seen as a “painless” form of taxation. However, lotteries are not without their critics. Critics cite potential problems such as compulsive gambling and the regressive impact on lower-income groups. They also worry about the difficulty of managing sudden wealth.
In the United States, lotteries began with Benjamin Franklin’s unsuccessful 1776 attempt to use a public lottery to fund cannons for the American Revolution. Later, a number of private lotteries were established, including those for the cities of Boston and Philadelphia and for private charities such as universities.
State governments enact laws regulating the lottery, and they usually establish a state agency or public corporation to run it (instead of licensing a private firm in return for a share of the profits). They typically start with a modest number of relatively simple games, but as pressure on revenues mounts, they gradually expand their product line. They are also known to increase their advertising and marketing efforts. Some states even allow their retail stores to promote the lottery to their customers.
