Lottery is a form of gambling in which numbers or symbols are drawn to determine a prize. Although some forms of gambling involve skill, the lottery is distinguished from other gambling activities because it relies entirely on chance. In order for a lottery to be legal, the process must follow certain guidelines:
A state lottery requires a combination of the elements of probability and public policy in order to be successful. The first of these is probability: The odds of winning a lottery prize must be reasonably high enough to attract significant numbers of players, and the prize money must be big enough to attract substantial revenues from those players. The second element is public policy: The state must set the boundaries of its lottery according to its own social and fiscal values. This includes determining whether the lottery is appropriate to meet its current and projected financial needs, and establishing a maximum jackpot size.
In the United States, the modern era of state lotteries began with New Hampshire in 1964. Since then, most states have adopted a lottery. Most of these have broad public support. In addition, they develop extensive specific constituencies: convenience store owners (who are the usual lottery vendors); lottery suppliers (whose heavy contributions to state political campaigns are widely reported); teachers (in those states in which lottery revenues are earmarked for education); state legislators (who quickly become accustomed to the additional revenue); and so on.
Some states make good use of their lottery revenues, putting money into such things as education, roadwork, and police forces. But in general, public officials struggle to develop and manage lottery policies, which are largely piecemeal and incremental, without the benefit of a broader overview. As a result, the public welfare is served intermittently and at best.