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 include money or goods. A lottery is a common method of raising money for state and other public projects, especially in countries with low incomes. A lottery may be run by private companies, by states, or by organizations with special authority from the government (e.g., religious groups). The term is also used for certain kinds of gambling games such as keno and video poker.
Using the casting of lots for decision making or to determine fates has a long record in human history, including several references in the Bible. The first recorded public lotteries to offer prizes in the form of money took place in the 15th century in towns such as Bruges, Ghent, and Utrecht for purposes such as raising funds for town fortifications or helping the poor.
National lotteries generate significant revenues for state governments and often replace other taxes, including sin and income taxes. However, a key question is whether the state should be in the business of promoting gambling, particularly when it disproportionately impacts lower-income communities and erodes formal education.
State officials argue that the popularity of lotteries is a measure of popular support for the general welfare and that they provide revenue needed to maintain state services during difficult times. But studies have shown that the objective fiscal circumstances of a state do not seem to have much bearing on the adoption or popularity of a lottery. Instead, the decision to promote a gambling activity seems to be determined by the political climate and by partisan considerations.
