Almost every state in the country now has an operating lottery. New Hampshire pioneered the modern era of state lotteries in 1964. Since then, state lotteries have sprung up all over the world. Lottery operations are remarkably similar to one another: The state legislates a monopoly for itself; establishes a government agency or public corporation to run it (as opposed to licensing a private firm in return for a share of the profits); starts with a modest number of relatively simple games; and, due to constant pressure for additional revenues, progressively expands its portfolio of offerings.
There are a number of factors that account for this universal popularity of the lottery. First and foremost is the psychological appeal of winning a prize, which is fueled by an inexplicable human desire to play. But the lottery also offers something else that draws people in: the promise of instant riches in a society with rising income inequality and limited social mobility.
Lotteries also promote themselves as a painless form of taxation. This argument is particularly effective in times of economic stress, when voters fear that their state governments may need to raise taxes or cut public programs. But studies have found that the popularity of lotteries is not related to a state’s actual fiscal situation.
In addition to drawing in the general public, lottery operators must also attract and sustain the interest of specific constituencies, including convenience store owners; suppliers of products such as scratch-off tickets and instant games; teachers (in states where a large portion of proceeds is earmarked for education); and, of course, state legislators (who quickly grow accustomed to the additional revenue). These interests have given rise to particular criticisms of the lottery, such as its role in encouraging gambling addictions and its regressive impact on lower-income groups.