A lottery is a game of chance in which numbers are drawn to determine a winner. It is generally regulated by state law. Prizes can range from cash to goods and services. During the 15th century, public lotteries were common in the Low Countries, where towns held them to raise money for town fortifications and other projects. The oldest running lottery is the Staatsloterij in the Netherlands, which started in 1726. In the United States, the first modern state lottery was introduced in New Hampshire in 1964. Other states quickly followed suit, largely because they were looking for ways to raise money for projects without raising taxes.
State lotteries have broad support from the general public, with 60% of adults reporting that they play at least once a year. But they also develop extensive specific constituencies—convenience store operators (who sell tickets); suppliers of merchandise and services to the lottery (heavy contributions from these companies to state political campaigns are reported); teachers, in those states that earmark lottery proceeds for education (lotteries are especially popular with high school and middle-school students); and state legislators (who are quick to adopt a “sales tax” on ticket purchases).
State lotteries continue to grow in popularity and generate large amounts of revenue. However, they face challenges from a number of sources: competition from other forms of gambling; concerns about compulsive gambling and the effects on lower-income people; and criticisms that lotteries are not as transparent as they should be.
