A lottery is an arrangement in which one or more prizes are allocated by a process that relies wholly on chance. The practice of distributing property and other valuables by lot has a long history in human civilization, with biblical references and a number of medieval records. Publicly organized lotteries became common in Europe and the United States from the 18th century on, often as a means to raise funds for particular goods or projects. The Continental Congress used a lottery to fund the Revolutionary War, and Alexander Hamilton argued that “everybody will be willing to hazard a trifling sum for a fair chance of considerable gain.” Some states use lottery revenues as their primary source of education funding.

Purchasing tickets in the hope of winning a big jackpot is a risky proposition, with only a small fraction of applicants winning. And yet, state lotteries continue to be popular. The reason is rooted in an inextricable human impulse to gamble. Lottery advertising promotes the concept of a low-risk investment, and the regressive nature of lottery revenues is obscured by state legislators who approve the lottery and by a general public that sees it as a civic duty to support state governments.

In fact, the vast majority of state lottery revenue is spent on operating expenses and prizes (including profits for the promoters) rather than taxes or other costs. As a result, most state lotteries are subsidized by a player base that is disproportionately lower-income, less educated, nonwhite, and male.