Lottery is a game in which numbers are drawn for prizes, often money, at random. The practice of making decisions and determining fates by the casting of lots has a long history, including several Old Testament examples and many ancient Roman lottery games, such as the apophoreta, in which gifts of slaves or property were distributed at Saturnalian feasts. Privately organized lotteries were common in England and the United States as a way to sell products or land for more than could be obtained from a sale or other regular transaction. During the American Revolution, for example, the Continental Congress voted to establish a lottery to raise funds for the war. Lotteries were also used for public purposes, such as the distribution of college scholarships.

State lotteries are run like businesses, with a strong focus on increasing revenues. They spend enormous amounts on advertising to persuade target groups to buy their tickets, and they try to make sure that the total value of the prizes will exceed the cost of promoting the lottery. But is this a legitimate role for governments, and is it at cross-purposes with the state’s interest in the general public welfare?

The evolution of lottery is a classic case of public policy being made piecemeal and incrementally, with little or no overall overview. Consequently, when lotteries are established they inherit policies and a dependency on revenues that they can do little to change. Revenues typically expand dramatically at the start, but then level off or even decline. To prevent the industry from collapsing, new games must be introduced regularly to keep players interested.