A competition based on chance, in which numbered tickets are sold for a prize drawn at random. Often used to raise funds for public or private projects, and also as a means of taxation.

Once established, state lotteries tend to develop substantial specific constituencies: convenience store operators (whose patrons typically purchase the tickets); lottery suppliers, whose heavy contributions to state political campaigns are regularly reported; teachers in states where revenues are earmarked for education; and, of course, state legislators (who become accustomed to the new revenue stream). They also draw broader public support. Indeed, studies suggest that the heightened sensitivity to the importance of luck may be a primary reason why people play the lottery.

Once state lotteries have been introduced, public debate typically shifts to issues surrounding the operation and regulation of the lottery. Generally, these concerns center on questions about the extent to which lottery proceeds are used to finance certain activities (e.g., education) and about the regressive nature of the taxes that the lottery imposes on lower-income groups. Some critics have also questioned the adequacy of the methods by which lottery revenues are collected and distributed. They argue that the earmarking of lottery proceeds for a particular purpose simply allows the legislature to reduce by the same amount appropriations that would otherwise be available to it for other purposes. However, other analysts point out that the objective fiscal circumstances of a state seem to have little bearing on the lottery’s popularity.