What is a Lottery?

Lottery is a game where participants pay a small amount to have an opportunity to win a much larger prize. It’s a common feature of social processes that have a limited number of desirable outcomes and are open to a large population, including kindergarten admission at a prestigious school, lottery for occupying units in a subsidized housing block, or a lottery for a vaccine against a fast-moving epidemic.

Lotteries have a long record in human history. The casting of lots was a regular practice in the Roman Empire—Nero loved it—and it’s attested to several times in the Bible. But the modern era of state-run lotteries started in 1964 when New Hampshire approved one, followed by thirteen other states and numerous private ones. Those states were in the Northeast and Rust Belt and figured that, if lottery money was poured into education and other services, it would allow those governments to expand their offerings without burdening their working-class constituents with especially onerous taxes.

In reality, however, the state lotteries quickly became dependent on their revenue streams and developed broad, specific constituencies—convenience-store operators (who buy most of the tickets); suppliers to the state’s gaming operations (heavy contributions to state political campaigns are regularly reported); teachers (in those states in which lottery proceeds are earmarked for education) and state legislators (who grow accustomed to the additional income). Lottery sales and revenues typically increase rapidly after a lottery is introduced but then level off or even decline. To keep revenues rising, the industry introduces more games and higher prize amounts.