The Lottery is a form of gambling in which numbers are drawn at random for a prize. Some governments outlaw it, while others endorse it and organize state or national lotteries. When government at any level is involved in a lottery, questions arise about its legitimacy and social impact. Does it promote gambling, which can have negative consequences for low-income people or problem gamblers? Does it run at cross-purposes with other important state functions, such as raising revenue?
The first known lotteries were held in the 15th century in the Low Countries for a variety of purposes, including raising money to repair walls and town fortifications. Privately organized lotteries were common in colonial America and helped to fund Harvard, Yale, King’s College (now Columbia) and other universities, as well as to provide public goods such as paving streets and building wharves. George Washington even tried to establish a lottery for the Continental Congress to raise funds for the American Revolution.
Since 1964, when New Hampshire became the first state to establish a lottery, state and local governments have been adopting the practice at a rapid pace. The general approach is similar: the state legislates a monopoly for itself; selects a publicly owned agency or corporation to operate the lottery; begins operations with a modest number of relatively simple games; and, due to continuing pressure for additional revenues, progressively expands the scope and complexity of the lottery. By the end of the 1990s, most states had established a system of multiple-choice lottery games and were selling billions of dollars worth of tickets each week.