A lottery is a random process for selecting one or more persons from among many applicants, who are otherwise equally qualified. It is often used for making decisions that have to be made by fair means but are too large for an individual to make, such as selecting members of a sports team among equal players, places in a school or university, or for a public job.
The term is derived from the Dutch noun lot, meaning fate or chance. Its origin is uncertain, but it may have been a calque on Middle French loterie (a reference to the drawing of lots) or on Old English lotterie, which also meant “fate”. The oldest running state lottery in Europe is the Staatsloterij in Belgium, established in 1726.
In every state in which it is introduced, the main argument for a lottery is that it is a painless way to raise revenue; players voluntarily spend their money to benefit the community. But the skepticism that this message generates is not just about its regressivity, which can be significant; it is also about its effectiveness in raising funds for public spending.
The vast majority of state lottery proceeds are spent on prize money, administrative costs and vendors; the rest is divvied up by each state to fund specific projects and programs it designs. The percentage that goes toward prize money varies by state, and the North American Association of State and Provincial Lotteries publishes detailed information on the distribution of state lottery funds.
