A lottery is a game in which players pay a small sum of money (the consideration) for the chance to win a prize. The prizes can range from cash to goods. The game has been around for a long time, as evidenced by town records from the Low Countries dating back to the 15th century in which lotteries were used for a variety of purposes, such as building walls and town fortifications or helping the poor. In the modern sense of the word, the term lottery refers to state-sponsored games offering cash or goods.
State lotteries have a long history in America, beginning with New Hampshire’s 1964 initiative and continuing today in the 37 states that offer them. The argument that they are a painless form of taxation and are an excellent way to finance public works projects has proved convincing to many voters, who want their states to spend more; politicians, who like the idea of raising funds for their programs without imposing direct taxes on the general population; and convenience store operators (whose employees often sell the tickets) and suppliers (heavy contributions from them to state political campaigns have been reported).
While the majority of lottery proceeds go toward paying out prizes, administration costs eat up another large chunk, as do commissions paid to retailers who sell tickets. A smaller share is also earmarked for gambling addiction treatment and other public programs. Critics contend that the popularity of lotteries encourages addictive gambling behavior, exacerbates social inequalities, and contributes to abuses such as fraud and mismanagement of winnings.
