A competition based on chance, in which numbered tickets are sold and prizes, such as money or goods, are awarded to the holders of those numbers. Generally, the prize amount is a fixed percentage of the funds raised by ticket sales. A number of states have lotteries, and they are also popular in other countries. The concept of choosing a prize by drawing lots has an ancient history, but modern state lotteries were first introduced in the 19th century. They have since gained broad public approval and remain popular. In addition to winning the support of the general public, they have developed extensive specific constituencies: convenience store operators (lottery tickets are usually sold at these locations); lottery suppliers (heavy contributions from them to state political campaigns are reported); teachers (in states that earmark lottery revenues for education); and state legislators (who quickly become accustomed to receiving the extra revenue).

Although critics argue that lottery proceeds are not a viable source of long-term revenues and that lotteries promote gambling addiction and have regressive effects on low-income people, state officials tend to ignore these concerns when making decisions about how to manage their state’s lotteries. They are not motivated by the state government’s actual financial health, which is often poor; rather, they view lotteries as a “painless” source of revenue that can allow them to expand their social safety nets without onerous taxes on middle-class and working families. The result is that policy decisions are made piecemeal and incrementally, with the overall operation of a lottery largely driven by market dynamics and pressures.