A competition based on chance, in which numbered tickets are sold and prizes given to the holders of numbers drawn at random; especially as a means of raising money for the state or a charity. The prize money may be cash or goods. In some states, lottery play is illegal. A person or group who runs a lottery is called the promoter. Federal statutes prohibit the mailing in interstate or foreign commerce of promotions for lotteries or the sending of lottery tickets themselves.
In recent decades, a growing number of states have adopted state lotteries to raise revenue for public services, including education and social welfare programs. The advocates of lotteries argue that they provide an alternative to high taxes on working-class and middle-class families. But the actual results have been mixed. Initially, lottery revenues expand rapidly and then level off or even decline. Then the promoters introduce new games in a desperate attempt to boost sales and keep revenues up.
Although making decisions or determining fates by the casting of lots has a long record in human history, lotteries for material gain are much more recent, dating back only to the 17th century. Benjamin Franklin, for example, used lotteries to fund his museum and to supply a battery of cannons to defend Philadelphia. Louis XIV also used lotteries to distribute his personal fortune and gifts to his court and other favorites.
The current vogue for state lotteries reflects a growing sense of political crisis in many parts of the world, with voters demanding more services from their governments and politicians seeking ever-more “painless” sources of revenue. The result, however, is often a vicious cycle. State officials, who are heavily dependent on lottery revenues, may be reluctant to increase taxes, but the lack of other funding sources makes it difficult to meet voter demands and even to maintain the status quo.
The bottom quintile of households spends a large percentage of its income on lottery tickets, a practice that is highly regressive. Americans spend over $80 billion per year on the lottery, which is more than enough to fund the entire budget of a middle-class city like Boston or Los Angeles. Yet it’s a waste of money that could be better spent on other things, such as building an emergency savings account. As it is, the poor and the near-poor struggle to have even $400 in their emergency funds. They might be tempted to buy a ticket or two in the hope of getting rich, but they should instead consider investing that money in their community and their children’s futures. After all, luck can only get you so far in this life. Excelsior!