A lottery is a method of distributing prizes by chance. Prizes may be money, goods, or services. The word Lottery is derived from the Middle Dutch word lotinge, meaning “action of drawing lots.” The first state-run lotteries were established in the Low Countries in the 15th century to raise funds for town fortifications and for helping the poor.
Lotteries typically begin operations with a modest number of relatively simple games and then, due to a constant pressure for additional revenues, rapidly expand the scope of their offerings by adding new games. As these innovations have evolved, the games have become increasingly complex. The resulting system of competition and promotion has created a complex set of incentives that creates powerful forces for the continual expansion of the Lottery in ways that are not always consistent with the needs or interests of the public.
The Lottery has developed extensive specific constituencies, including convenience store operators (the main vendors for the tickets); lottery suppliers (heavy contributions to state political campaigns by lottery supplier companies are regularly reported); teachers (in states in which lottery revenues are earmarked for education); and state legislators (who quickly find themselves attracted to the easy revenue that lotteries generate). It also has gained broad public support because it is argued that the proceeds benefit a particular public good—education, in most cases. This argument is especially persuasive in times of economic stress, but research has found that the objective fiscal circumstances of a state do not have much bearing on whether or when a lottery is established.