Lottery is a process in which people bet small amounts of money on the chance to win large prizes. In financial lotteries, participants purchase tickets with a series of numbers and hope that their selections will match those randomly drawn by a machine. The winning numbers are then awarded a prize. Other types of lotteries award specific goods or services, such as units in subsidized housing or kindergarten placements. The history of lotteries is complex and controversial.
While the casting of lots for making decisions and determining fates has a long record in human history, public lotteries to distribute prize money are considerably more recent. The first known lottery was held in Bruges in 1466, for the purpose of raising funds for the poor.
In the modern era, lotteries have grown in popularity and scope. Almost every state now has one. Initially, the states established lotteries to raise revenue. In the immediate post-World War II period, they viewed lotteries as a way to expand state government services without significantly increasing tax rates on middle and working class families.
However, these initial motivations have faded and now lotteries rely on two messages. One is to sell the idea that playing the lottery is fun and a great experience; the other is to emphasize how much they help state governments. But both of these messages obscure the fact that lotteries are a form of gambling and that they are regressive. They may help raise some state revenues, but they do so by attracting gamblers who spend a significant share of their incomes on tickets.
