A competition based on chance in which people buy numbered tickets and prizes are given to those whose numbers are drawn at random. A lottery is often sponsored by a state or a charity and can be an effective way of raising money.
When lotteries first appeared in the United States, they were embraced by state leaders who saw them as a means of funding a broad array of government services without placing undue burdens on lower-income citizens. This arrangement was possible during the period immediately following World War II, but by the 1970s it was becoming less and less feasible, and it was not long before states began to run into problems that could be addressed only through increased taxes.
Despite a generally negative public reaction to the idea of state-sponsored gambling, lotteries have proven remarkably popular and have been adopted by every state since New Hampshire began the modern era of the lottery in 1964. However, in virtually all cases the initial enthusiasm has given way to concerns about the operation of the lottery and its effects on society.
Most of the concerns revolve around the fact that, in a society where most people spend far more than they earn, the vast majority of the revenue generated by a lottery is passed out as winnings to those who play it. Some people argue that this promotes problem gambling and deprives other services of much-needed funds. Other critics point to the fact that, because state lotteries are run as businesses with a strong focus on maximizing revenues, they must rely on aggressive advertising that can have adverse effects on certain groups.
