Lottery is a popular form of gambling that is sanctioned by state governments. Almost all states have lottery games, which have become an enormous business in the United States and have contributed a significant percentage of the total state revenues in many cases. The lotteries are financed by selling tickets that have a small chance of winning a prize, usually money. Lottery revenues typically expand rapidly upon introduction and then begin to level off and decline over time. The industry is thus driven to introduce new games in order to maintain or increase revenues.
Lotteries promote themselves with two main messages. One is that people should play the lottery because it raises money for the state. This message obscures the fact that lotteries are a very expensive way for states to raise revenue and that the money they raise is unlikely to be sufficient to meet most state budget needs.
The other major message that lotteries rely on is that playing the lottery is a fun experience, especially in the case of scratch-off tickets. This also obscures the regressivity of the lottery as well as the fact that people who play the lottery regularly tend to spend a substantial portion of their income on it.
The regressivity of the lottery is particularly pronounced because it attracts people from lower-income neighborhoods, and disproportionately involves men, blacks, and Hispanics. As a result, lottery revenues are more likely to come from low-income neighborhoods than they are to be used for state-funded programs.