Lottery is a form of gambling where people purchase tickets for the chance to win a prize. Prizes are typically cash or goods. Some states run their own lottery; others license private firms to conduct the lottery. In the latter case, the state receives a percentage of the profits. Lotteries have a long history in Europe and America. In colonial America, they financed many public and private ventures, including roads, wharves, canals, churches, libraries, and colleges. Benjamin Franklin held a lottery to raise money for cannons to defend Philadelphia during the Revolution; George Washington sponsored a lottery to build a road across the Blue Ridge Mountains.
In modern times, state lotteries usually follow similar paths: the state legislates a monopoly for itself; establishes a government agency or public corporation to run the lottery (as opposed to licensing private firms in exchange for a share of the profits); begins operations with a modest number of relatively simple games; and then, faced with pressures for more revenues, progressively expands the lottery’s size and complexity by adding new games. The expansions typically result in a rapid increase in revenue and a subsequent plateau or decline.
Because of the ubiquity and popularity of state lotteries, they have developed extensive and specific constituencies: convenience store operators; lottery suppliers (heavy contributions to state political campaigns are often reported); teachers (in states where lotteries generate revenues earmarked for education); and state legislators. But, in spite of these advantages, lotteries are not immune to criticisms that they rely on “poverty politics.” Even when they provide substantial funds for education and other state programs, they are often perceived as contributing to the gap between rich and poor.