A lottery is an arrangement in which prizes are allocated to individuals using a process that relies on chance. The practice has long been popular in various cultures, dating back to biblical times when Lot was used to distribute land and other property. In modern times it is used in a variety of ways to make decisions, such as filling vacancies on a sports team among equally competing players or placing students in schools and universities. The process is also widely used to award public contracts, although this has been the subject of much debate.
There is a certain inextricable human impulse to gamble. Lotteries capitalize on this by dangling the hope of instant riches in an era of inequality and limited social mobility. But there’s also something else going on. Buying lottery tickets is, in effect, a form of taxation. People are contributing billions to government receipts that could otherwise go toward things like retirement or college tuition.
Since New Hampshire introduced the first state lottery in 1964, virtually all states have followed suit. Most adopt a similar format: The state legislates a monopoly for itself, establishes a public corporation to run the lottery (as opposed to licensing a private firm in return for a share of the profits), begins operations with a modest number of relatively simple games, and — due to constant pressure for additional revenues — progressively expands its portfolio.