A gambling game or method of raising money in which a drawing is held for prizes. Also: anything whose outcome appears to be determined by chance:”Life is a lottery.”
The drawing of lots to distribute property and other rights has been practiced since ancient times; it is recorded in the Bible and was used by Roman emperors. The modern lottery, as introduced in the United States by British colonists, is a public enterprise whose revenue streams are generally earmarked for specific purposes. Examples include units in a subsidized housing block or kindergarten placements at a reputable public school.
State lotteries, once established, typically follow a similar pattern. The state legislates a monopoly for itself, establishes a public agency or corporation to run the operation (as opposed to licensing a private firm in return for a share of the profits), and begins operations with a modest number of relatively simple games. Revenues usually expand dramatically in the first years of operation and then level off and even decline. To increase revenues, the lottery commission often introduces new games.
A major source of public support for state lotteries is the claim that proceeds are earmarked for a specific public good, often education. The success of this argument has been demonstrated by the fact that state lotteries enjoy broad popular approval even when the state government’s objective financial circumstances are good, as they are today. Moreover, state lotteries develop substantial and specific constituencies, including convenience store operators; lottery suppliers, who make heavy contributions to state political campaigns; teachers, in states where lotto revenues are earmarked for education; and state legislators, who grow accustomed to the extra revenue.