Lottery is a competition in which numbered tickets are sold and prizes (usually cash or goods) are given to the holders of those numbers drawn at random. The word is also used to describe the act of drawing lots for decision-making or (in early use) divination. It was a common practice in the colonies to hold lotteries, with proceeds used for both public and private ventures, including roads, canals, bridges, churches, colleges, libraries, and even the foundation of Princeton and Columbia universities.
Despite their popularity, however, state lotteries have proved to be controversial. The primary argument for them is that they provide a “painless” source of revenue by which governments can raise money for a variety of purposes without the objection of taxpayers. The reality has proved more complicated, as the growth in lottery revenues – as well as a proliferation of new games aimed at generating those revenues – has created a number of issues, ranging from concerns about compulsive gambling and regressive effects on lower-income groups to questions about whether this is an appropriate function for a government to undertake.
It’s not surprising that a lottery should generate controversy; it is, after all, essentially a form of gambling. But some of the problems generated by state lotteries are unique, and they stem largely from the fact that the industry is operated as a business, with a primary goal of maximizing revenues. As a result, it is constantly trying to lure customers by promoting games that might appeal to different groups, and it is constantly adapting its marketing to take advantage of changes in consumer behavior.
