Lottery is an arrangement in which prizes (typically money) are allocated by chance to one or more people. It may be used for public or private purposes. The practice of drawing lots to determine fates or property rights has a long record, including several cases in the Bible and the use of lotteries for distributing property during Saturnalian feasts. Modern state lotteries usually raise funds for a public purpose, such as education.
The history of state lottery operation follows a similar pattern: the state legislates a monopoly for itself; establishes a state agency or public corporation to run the lottery, or licenses a private firm in return for a share of profits; starts operations with a modest number of relatively simple games; and, due to continual pressure for additional revenues, progressively expands the size and complexity of the lottery, particularly by adding new games. Public lotteries are popular in the United States, with the highest revenue coming from those that award cash prizes to winners. Private lotteries are less popular.
Critics charge that lotteries promote gambling addiction and discourage responsible spending by making a false promise of wealth. They also criticize the regressive nature of lottery proceeds. Those who play the lottery tend to be poorer, with limited discretionary income available for other activities; they are most likely to spend significant sums on tickets and may find themselves in serious financial trouble if they become addicted or overspend. Moreover, the lottery message is coded in such a way as to obscure the regressivity and to encourage irrational gambling behavior by promoting the notion that a tiny sliver of hope — the chance of winning the biggest prize — is worth the risk.
In addition, the advertising messages used by state lotteries are geared toward particular demographic groups: convenience store operators and suppliers (heavy contributions from these interests to state political campaigns are often reported); teachers (lotteries frequently earmark a portion of proceeds for education); and legislators (who quickly grow accustomed to the extra revenue). In general, however, lottery publicity emphasizes the large jackpots offered and the excitement of playing the game.
While the popularity of lottery games is undoubtedly rooted in human nature, the actual results suggest that there is more to it than that. The likelihood of winning the big jackpot is a very slim proposition, and the odds are stacked against a player — even with the best strategy. But there is still a glimmer of hope that he or she will be the lucky winner, which is enough to keep some people from abandoning their dreams and relegating themselves to the ranks of the unemployed. For these people, the lottery represents a last, best, or only chance to make it up the ladder. For others, the lottery represents a harmless hobby that offers an escape from the grind of daily life. In either case, it provides a moment of joy for many people. This article originally appeared in the December 2011 issue of the MIT Technology Review.