Lottery has a long history, starting with Moses being instructed in the Old Testament to divide land among his people by lot. Ancient Roman emperors used lotteries to give away slaves and property. In the United States, Benjamin Franklin sponsored a lottery in 1776 to raise funds for cannons for Philadelphia’s defense against British forces during the American Revolution. And a number of state lotteries still exist today, bringing in billions of dollars every year.
In addition to their reliance on chance, lotteries also generate revenue by requiring players to pay a small fee to enter the game. This has created a second set of criticisms, including allegations of compulsive gambling behavior and regressive effects on low-income residents.
Regardless of the specifics, however, the basic mechanics of a lottery are remarkably consistent across different state lotteries. In every case, the state legislature passes a law creating the lottery; establishes a public agency or private corporation to run it; begins with a modest number of relatively simple games; and, due to continuous pressure for additional revenue, progressively expands its operations by adding new games.
The underlying reason for the popularity of lotteries is that they are seen as a way to raise money for a particular public good, usually education. This message is especially effective in times of economic stress, when state government budgets are strained and taxpayers fear tax increases or cuts to public programs. But it also works in more stable economic conditions. In fact, Clotfelter and Cook note that state lotteries enjoy broad public support even when a state’s actual fiscal situation is strong.