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Public Policy and the Lottery

A lottery is a scheme in which numbers are drawn by chance and prizes awarded to the holders of tickets. It is also a way of raising money, such as for government or charitable purposes.

The concept of distributing property or other assets by lot dates to ancient times, as do the terms lottery and gambling. The Bible instructs Moses to give away land by lot, and Roman emperors used the apophoreta—a form of raffle during Saturnalian dinners—to give slaves and other valuables away.

In modern times, states have created state-operated lotteries, and their revenues are a significant source of their general funds. These profits are at the center of much controversy, including charges that state lotteries promote gambling to compulsive gamblers and have a regressive effect on lower-income populations. Some critics argue that lottery promotions are unconstitutional, and the question of whether it is appropriate for a government to run a profitable gambling operation is one that deserves careful consideration.

Lottery games evolve rapidly, and their evolution is driven by public policy decisions that are often made piecemeal with little overall vision or direction. Many state officials inherit policies and a dependence on revenues that they can change only at the margins. The challenge is to ensure that the goals of state lotteries are consistent with, and do not compete with, those of other, more important state functions. For example, if the state’s top priority is to attract more players and generate higher revenues, that might conflict with the objective of improving educational opportunities.