Public Uses of Lottery

Lottery is a form of gambling in which the winners are determined by chance, rather than through skill or careful organization. It has a long history in human society, but was first popularized in the 17th century as a way to raise funds for a variety of public uses. State governments often operate lottery games, with the proceeds earmarked for specific public purposes, such as education.

While many people claim to play the lottery regularly, studies show that the percentage who do so is much lower: about half of all Americans buy a ticket once a year. The players are disproportionately low-income, less educated, nonwhite, and male. In addition, lotteries generate a substantial amount of money from specific groups that would otherwise not gamble: convenience store owners (the usual vendors); lottery suppliers (who make heavy contributions to state political campaigns); and teachers (in states in which revenues are earmarked for them).

While the casting of lots to decide fates has a long history, the use of lotteries to distribute prizes for material gain is much more recent. In colonial-era America, lotteries were used to finance projects such as paving streets and constructing wharves. They also played an important role in the early establishment of the colonies, with Benjamin Franklin promoting a lottery to help pay for cannons for Philadelphia against the British. Today, state governments are increasingly relying on lotteries to raise revenue. Lottery revenues typically expand rapidly after the games are introduced, then level off and even decline. To keep up revenues, the state must continually introduce new games.