What is a Lottery?

Lottery is a popular form of public gambling in which players purchase tickets for the chance to win a prize, such as cash or goods. It has a long history, and is generally seen as a painless way for state governments to raise money for a variety of purposes.

In colonial-era America, for example, the Continental Congress held lotteries to fund the Revolutionary Army and other projects. George Washington even sponsored a lottery to raise funds for cannons to defend Philadelphia. Throughout the post-World War II period, states used lotteries to support a wide range of public services without raising onerous taxes on middle and working classes.

When a state establishes a lottery, it typically legislates a monopoly for itself; sets up a government agency or corporation to run the operation; starts small with a limited number of games; and begins operations on a limited basis. In subsequent years, the size of the state’s lottery is usually increased through innovation in games. The resulting revenues tend to grow rapidly at first, then level off and eventually decline. State officials are then tempted to introduce new games to maintain and possibly increase these revenues.

Although there is some debate about whether or not state lotteries are good for the economy, the reality is that they continue to attract substantial amounts of public approval. This support is often based on the view that proceeds from lottery ticket sales help to support areas of the state budget in need of funding, such as education.