A lottery is a type of gambling in which people pay for a ticket with numbers that are drawn at random. The numbers are either selected by individuals or assigned to machines, and the winners get a prize. Financial lotteries are often run by state governments, though they are also common in sports and other arenas where a limited number of opportunities are available to equally qualified players or applicants (e.g., units in a subsidized housing block, kindergarten placements at a reputable public school).
Many states promote their lotteries by emphasizing the social benefits that their proceeds provide. These arguments are effective during periods of economic stress, when voters fear tax increases or cuts in services. But they are less persuasive when the state government’s fiscal condition is strong, as it is for most states.
Once established, lotteries evolve into a complex web of private and public interest groups. In most cases, the governing body of the lottery is fragmented: It is divided into legislative and executive branches; a wide range of private interests seek influence; and state lottery officials become dependent on revenue streams that they can do little about. The result is that policy decisions are made piecemeal and incrementally, with little general overview or accountability. Moreover, promotion is necessarily focused on persuading target groups to spend their money on the lottery. This strategy raises a number of questions about the role of the state as a promoter of gambling, including its effects on the poor and problem gamblers.