A lottery is a form of gambling in which a prize is offered for the chance to win a drawing. Modern lotteries are also used for military conscription, commercial promotions in which property is given away by a random procedure, and the selection of jury members from lists of registered voters. In contrast to gambling, in which payment of a consideration is required for the chance to win, public lotteries are designed to generate revenue for state government without raising taxes.
In the early years of state-sponsored lotteries, they were widely viewed as a way for states to expand their range of social safety net programs without significantly burdening middle- and working class taxpayers. But, in the aftermath of World War II, as state budget deficits exploded and inflation began to erode real incomes, lottery revenue became an increasingly important component of state finance.
Today, the state-sponsored lotteries that have established a dominant position in American culture continue to attract broad popular support even though they are not as fiscally sound as their critics suggest. Their popularity is not correlated with the state’s actual financial health: Lottery proceeds consistently exceed expectations and do not appear to be a replacement for other tax sources, such as general fund revenues.
Lottery officials argue that their popularity is due to the fact that they are a source of “painless” revenue, with players voluntarily spending their money for the good of society. But this argument is flawed, and it obscures the extent to which the promotion of lottery gambling is at cross-purposes with the general welfare.