A competition based on chance, in which numbered tickets are sold and prizes are given to the holders of numbers drawn at random. Prizes may be money or goods, services, or even jobs. State lotteries are regulated by law and are popular as a means of raising money for public uses, such as education or welfare programs.
The word lottery is probably a calque on Middle Dutch loterie or Loterij “action of drawing lots” (see the Oxford English Dictionary). It has long been used to describe various state-sponsored games in which numbers are drawn at random and prizes awarded.
State lotteries are a remarkably successful form of gambling. They are easy to regulate and provide a steady stream of revenue, often for a very small investment by participants. They are also largely free of the stigma associated with other types of gambling and have become an integral part of the American culture.
Lottery proponents argue that the profits are a “painless form of taxation” and provide needed revenue to public uses without placing an undue burden on poorer citizens, especially during times of economic stress. They also argue that the results are largely determined by chance. But these arguments fail to account for the many factors that influence state government finances, and studies have shown that the objective fiscal health of a state has little effect on whether or when it adopts a lottery.
People who play the lottery are often clear-eyed about the odds of winning. But they are still drawn to the game, in part because it promises instant riches and the hope of a better life. This sense of opportunity, in an era of inequality and limited social mobility, is a powerful incentive to gamble.