A lottery is a gambling game in which a fixed number of prizes are assigned to different players. In modern use, it’s often used to raise money for government projects and to give away goods or services. The prize in a lottery may be cash or merchandise, but it’s usually not an asset like real estate or a car.
The term comes from the Dutch noun lot, which means “fate.” Historically, state-run lotteries have been popular in Europe and America as a painless form of taxation. In colonial America, they financed public works projects and even buildings at Harvard and Yale. In 1768, George Washington ran a lottery to build a road across the Blue Ridge Mountains.
In recent years, many states have diversified their gaming revenues by offering games such as video poker and keno. But the increasing popularity of these games has also contributed to the decline in traditional lotteries’ profits. This, in turn, has prompted calls for more aggressive promotion and expansion of the number of games available to play.
State officials must balance the desire to expand the lottery with the need to protect the integrity of the gaming industry and control costs. Moreover, the way state lotteries evolve is not ideal for developing a coherent “gambling policy.” Lottery policy decisions are typically made piecemeal and incrementally by individual lottery commissions, with little or no oversight by legislative or executive branch agencies. This approach can result in a fragmented industry and insufficient consideration of the overall public welfare.
