Lottery is a process of distributing prizes by drawing lots. The casting of lots has a long record in human history and occurs in many contexts, including military conscription, commercial promotions in which property is awarded by random procedure, and the selection of jury members. Lotteries in which money or goods are the prizes are also common and have become widely used for raising public funds for a variety of purposes, including providing assistance to the poor.
Several states have adopted lotteries since New Hampshire initiated the modern era of state-sponsored games in 1964. Most lotteries are conducted by public corporations, but some are run by a private company under contract with the state. Lottery prizes are usually cash or merchandise, but in some instances a person can win units in a subsidized housing block or kindergarten placements at a particular school.
Lotteries generally have broad public support, with some 60% of adults reporting playing at least once a year. Lotteries also develop extensive specific constituencies, including convenience store operators (who are the usual vendors for lottery tickets); suppliers of services to the lottery; teachers (in states where lottery revenues are earmarked for education); and state legislators.
State officials promote the lottery by emphasizing its value as a painless form of revenue. Critics argue that the advertising is misleading, that it focuses on portraying the game as a “fun” activity instead of describing the probability of winning and the total value of a prize (which, because of taxes and inflation, is significantly less than the original price). The promotion of the lottery may also divert attention from more serious issues, such as problems with compulsive gamblers and the regressive effect of the games on lower-income households.