Lottery: A competition based on chance, in which numbered tickets are sold for a chance to win a prize. The word lottery is derived from the Latin noun loterium, which means “fate.” The practice of distributing property or other goods through random selection dates back to ancient times. A variety of modern applications for a “random selection” process are called lotteries, including military conscription and commercial promotions in which goods or services are given away for free. A more strictly gambling type of lottery involves payment of a consideration (property, work, or money) for the chance to receive a prize.
The popularity of state-sponsored lotteries has grown steadily since New Hampshire initiated the modern era in 1964. Throughout the evolution of the various state lotteries, the principal argument for their adoption has been that they provide a source of painless tax revenue. State governments adopt lotteries as a way to generate income for specific public purposes, such as education or public works projects. Lottery proceeds have also been a popular source of funding for colonial-era America, as well as the building of Harvard and Yale colleges.
Lotteries typically begin operations by legislating a state monopoly for themselves and establishing a government agency or public corporation to run the lottery. In the beginning, they operate with a modest number of relatively simple games. Then, in order to maintain or increase revenues, the lotteries introduce a continuous stream of new products and promotional campaigns. The resulting proliferation of games and marketing activities often diverts attention from more general issues of government policy, such as the potential for compulsive gambling and a regressive impact on lower-income groups.
