What is a Lottery?


A gambling game or method of raising money for a public charitable purpose in which tickets are sold and a drawing is held for prizes. The word lottery is also used to describe any process in which the outcome depends on chance: to view something as a lottery, to cast one’s fate in the lottery.

Although the concept of using lots to determine fate dates back centuries (as in the Old Testament, where Moses was instructed to take a census and divide the land among people according to their lot), lotteries as we know them were first introduced to Europe by towns trying to raise funds to build town fortifications or aid their poor. By the 18th century, American colonists had started their own lotteries, which helped finance roads, libraries, churches and colleges — Benjamin Franklin even organized a lottery to help finance cannons for Philadelphia’s defense.

The modern state lotteries follow similar paths: They establish a state agency or public corporation to run the operation; begin operations with a modest number of relatively simple games; and, as pressure for revenues mounts, gradually expand their offerings. Critics complain that the resulting lotteries are not based on a fair representation of the odds of winning the grand prize, inflate the amount of money that can be won by a single ticket, and, in many cases, pay out prizes in a form that erodes their value over time (lotto jackpot prizes are often paid in equal annual installments for 20 years, with taxes and inflation dramatically eroding the current value).

The popularity of the lotteries, combined with the fact that they have little or no regressive impact on lower-income households, makes them an attractive tool for boosting government revenue without increasing overall tax rates. However, they have their downsides: They can be addictive, they dangle the promise of instant riches to people who can least afford it, and they can foster an unhealthy dependence on gambling that undermines other forms of income generation.

Posted in: Gambling