Lottery is a form of gambling in which participants choose numbers or symbols to win a prize. The term lottery was probably derived from the Dutch word lot (fate or chance) and the French word for drawing lots, although it is also a calque of Middle Dutch lotinge, “action of drawing lots.” It has been in use since the 15th century to describe any kind of competition where prizes are awarded through a random process.
A number of state lotteries have been established to raise money for public purposes such as education or highway construction. They enjoy broad public support, even though they are not considered to be a particularly effective source of revenue. A main argument used in support of the lottery is that proceeds are a “painless” source of money for states, because players voluntarily spend their own dollars instead of paying taxes.
Lottery revenues tend to increase rapidly after a lottery is introduced, but then plateau or decline. To maintain or even increase revenues, lotteries introduce new games that appeal to changing tastes and demographics. Some critics argue that these new games exacerbate problems associated with the lottery, including disproportionately targeting poorer individuals, fueling problem gambling, and providing a constant stream of new opportunities for addictive behavior. Others claim that the games are simply a way for lottery officials to avoid the unpleasant political and social consequences of raising or cutting general tax rates. Regardless of the motives for adopting a lottery, one thing is clear: the public has little interest in having an objective analysis of its fiscal implications.
