A lottery is a game of chance in which people purchase tickets to win prizes. Prizes can range from cash to goods to services to vacations. Unlike most other forms of gambling, the proceeds from lotteries are used to benefit the public. Many states have state-sponsored lotteries, but many private companies also conduct lotteries for their own customers. In the past, some of these lotteries had a religious or charitable purpose. But today, the majority of lottery profits are collected by commercial operators.
Lottery games have a long history, dating back to the Roman Empire (Nero loved them) and even earlier in biblical times, when they were used for everything from divining God’s will to determining the fate of Jesus’ garments after his Crucifixion. But the modern state lottery has only been around since 1964, when New Hampshire launched the first modern era state lottery. Since then, state lotteries have proliferated across the country.
The main argument for state lotteries has always been that they are a source of “painless” revenue, with players voluntarily spending money for the benefit of public good, without any of the thorny political issues surrounding raising taxes or cutting spending on things like education. Politicians love this narrative, and voters appear to buy it. Indeed, when state government revenues are falling, the lottery seems to be an especially effective tool for shoring up popular support and winning approval for new programs.
But the same dynamic that leads to lotteries’ popularity and success has also made them a source of persistent controversy and debate. The most prominent of these concerns include allegations that they promote compulsive gambling, regressive impacts on low-income populations, and other issues of social policy.
Another common argument against lotteries is that they squander the public’s hard-earned tax dollars. This is particularly potent in times of economic stress, when voters are reluctant to support increased taxes and cuts in important services. But, as Cohen explains, this argument has never been persuasive enough to derail the rapid expansion of state lotteries.
In fact, lottery critics have tended to focus more on the specific operations of the industry and less on its broad appeal. That’s because revenue growth tends to level off and even decline after a few years, as the public becomes bored with the same old games. That’s why state lotteries must introduce new games regularly to maintain interest. This process is both a symptom of and driver for the problem of lottery addiction.