What is a Lottery?
A lottery is an arrangement in which prizes are allocated by lot. The term has been applied to a wide variety of arrangements, including state-sponsored games in which numbers are drawn for a prize (lottery), and more generally to any scheme in which the distribution of goods or services depends on chance. The word is derived from the root of the Latin word lotto, meaning “fate or destiny by lot.” The practice has a long record, and is reported in the Bible and other ancient texts.
The modern state lottery was introduced in New Hampshire in 1964, and has spread throughout the country ever since. It has been a very popular form of public revenue, and no state has abolished it. It has developed extensive, specific constituencies that include convenience store operators (who buy large amounts of tickets); suppliers of lottery equipment and supplies (heavy contributions to state political campaigns are frequently noted); teachers (in states in which the proceeds are earmarked for education); and state legislators (who grow accustomed to the extra income).
It is possible that the growing popularity of lotteries can be explained by a desire on the part of some people to escape from the grinding insecurity of modern life, a wish to become wealthy by a stroke of luck. This is especially true for those from lower income backgrounds, who tend to play more heavily than the rich. They see the lottery as their last, best or only hope. They know the odds are long, and they have all sorts of quote-unquote systems — irrational as these may be — about picking lucky numbers and stores and times of day to buy tickets. But they do get some value out of the dream and the hope, as irrational as it is.
Some state lotteries award prizes in the form of cash, but many offer annuities that pay a stream of payments over 30 years. In either case, the total amount awarded exceeds the amount of money that could be raised by any one of the lottery’s entrants individually.
Almost all state lotteries are operated privately, but a few are run by the federal government. In general, the policies that govern the operation of a state lottery are determined piecemeal and incrementally, with little overall policy oversight or debate. This is a classic example of the way that governments often make decisions about their own affairs without having to answer to any external scrutiny. The result is that officials find themselves with a policy and a dependency on revenues they cannot easily change. This is a problem that is far more serious for state lotteries than it would be for private businesses. But it is an issue that needs to be addressed. Public debate should be aimed at a more comprehensive, systemic approach to the operation and regulation of lottery policies. This is the only way that the public can be confident that lottery proceeds are being used wisely and fairly.
