A lottery is an arrangement in which prizes (which can be cash or goods) are allocated by chance. In the United States, there are a number of different lottery games, but in general they all have three elements: payment, chance, and prize. Federal statutes prohibit, among other things, the mailing or transportation in interstate and foreign commerce of promotions for lotteries or the shipment of lottery tickets themselves.
In the United States, the term “lottery” is generally used to refer to a state-run game in which a ticket with a series of numbers is purchased for a chance to win a specified prize. It is important to note that a state cannot establish a lottery without the consent of the public, through a referendum on the issue. As with all forms of gambling, lottery play raises a variety of concerns, some ethical and others social. The ethics concerns typically relate to the perceived exploitation of compulsive gamblers and a perceived regressive impact on lower-income people.
The social concerns often center on the fact that the majority of lottery players are drawn from middle-income neighborhoods, and far fewer from high-income or low-income areas. Some studies suggest that this trend may be exacerbated by the tendency of lottery advertising to emphasize the big jackpots and underplay the percentages of winners.
Whether the social or ethical concerns are the primary motivators for people to participate in lotteries, there is no doubt that the appeal of the opportunity to change one’s fortune is strong. This is the message dangled on billboards proclaiming the Mega Millions or Powerball jackpots, and it is reinforced in radio and television commercials. It is also why many people choose to purchase a lottery ticket, even though it is considered illegal in some states.
Lotteries have a long history, going back to ancient times, and they played a major role in colonial America, where they helped finance roads, wharves, libraries, churches, colleges, and canals. Benjamin Franklin, for example, ran a lottery to raise funds for the construction of cannons to defend Philadelphia against the British.
Since New Hampshire initiated the modern era of state lotteries in 1964, they have grown in popularity and become a staple in many state budgets. The expansion of lottery play has been accompanied by growing criticism, however, with critics focusing on problems such as the promotion of the games, their dependence on the revenue from sales, their regressive impact on poorer citizens, and other social and ethical issues. Many states struggle with the problem of how to balance the competing interests of these different constituencies. As a result, the development of lottery policy is often piecemeal and incremental, with little overall direction or guidance. This can have a profound effect on the future of state lotteries. For example, a lottery may be established to help fund a subsidized housing block or kindergarten placements, but these goals are soon overshadowed by other state priorities. The results of this approach are often messy and unpredictable.