Lottery is a form of gambling wherein numbers are drawn at random to determine the winners of prizes. This type of lottery is often used by government agencies and charities for raising money. The prize money may be cash, goods, or services. This type of lottery has many critics who claim that it promotes addictive gambling behavior and is a significant regressive tax on poorer households. Some people also claim that it erodes the trust between the state and its citizens.
Despite these criticisms, most states have established and continue to operate a lottery. The modern lottery began in New Hampshire in 1964, and it was followed by New York, Pennsylvania, and other states. The evolution of each lottery has followed remarkably similar patterns: the state legislates its own monopoly; establishes a state agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a portion of the profits); begins operations with a modest number of relatively simple games; and, due to constant pressure for additional revenues, progressively expands in size and complexity, particularly by adding new games.
It is a classic example of public policy being made piecemeal, incrementally, and with little or no overall view. Lottery officials must satisfy numerous specific constituencies, including convenience store operators; suppliers (who often contribute heavily to state political campaigns); teachers, for whom a percentage of the proceeds are earmarked; and state legislators. As a result, few states have a coherent gambling policy, and the general welfare is only intermittently taken into account.