Lottery is a popular form of gambling, and people spend upwards of $100 billion on tickets every year. States promote lotteries by describing them as a way to help children. But this claim obscures the fact that lottery money isn’t actually helping kids. Instead, it’s just another tax that benefits certain groups at the expense of others.
State governments use the lottery to raise money for a wide range of purposes, from roads to schools. In addition to state agencies and public corporations, private companies often operate lotteries. Regardless of how they are organized, all lotteries follow the same basic pattern: the state legislates a monopoly for itself; establishes a public corporation or agency to run the lottery (as opposed to licensing a private firm in return for a share of profits); begins operations with a modest number of relatively simple games; and then, under constant pressure to produce additional revenues, gradually expands its size and complexity, particularly by adding new games.
The history of lotteries is complex. Originally, they were cast for the determination of fates and possessions, but later they became a means of raising public funds. The first recorded public lottery was organized in the Roman Empire by Augustus Caesar to pay for municipal repairs in Rome.
In the United States, lotteries are regulated by federal and state laws. Most states have passed laws requiring that the winning numbers be selected by an impartial independent entity, and that all proceeds from the sale of tickets be deposited into state general funds. State laws also typically prohibit the sale of multiple tickets to the same person or organization, and require that the winning ticket be claimed by a responsible individual who is willing to take custody of the prize.
Lotteries have won broad public support because they are seen as a source of “painless” revenue, a form of taxation in which the players voluntarily spend their own money for the benefit of the public good. This argument has proved effective, especially in times of economic distress, when voters fear state budget cuts or higher taxes. But it has also won acceptance even when the state’s financial situation is strong.
In addition to promoting gambling, state lotteries have developed extensive specific constituencies: convenience store operators; lottery suppliers (heavy contributions from these businesses to state political campaigns are regularly reported); teachers (in those states in which the vast majority of lottery revenues are earmarked for education); and state legislators who become accustomed to receiving lots of campaign donations in return for their support of lotteries.
