A lottery is a form of gambling in which numbers are drawn to determine winners. State governments sponsor lotteries to raise money for public projects and, in some cases, to fund education. In the US, people spent over $100 billion on lottery tickets in 2021. State officials promote the games as a way to improve public services without raising taxes on the middle class and working class. However, a closer look at the statistics reveals that lotteries are neither efficient nor fair.
The idea of determining fates by drawing lots has an ancient history, and the first recorded public lottery to distribute prize money was held in the Low Countries in the 15th century to raise funds for town fortifications and to help the poor. In the following centuries, lotteries became a common means of raising funds for all sorts of public projects.
In colonial era America, for example, lotteries raised funds for paving streets, building wharves, and establishing colleges. Benjamin Franklin even sponsored a lottery to raise funds for cannons to defend Philadelphia against the British.
Today’s state lotteries follow a similar pattern. The government legislates a monopoly for itself; sets up a state agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a share of profits); begins operations with a modest number of relatively simple games; and, due to continued pressure to increase revenues, progressively expands the portfolio of available products.