A lottery is a method of drawing lots at random for a prize. Some governments outlaw lotteries, while others endorse them and organize state or national lotteries. Governments regulate the lotteries they establish, though, to prevent minors from participating and to ensure that tickets are sold by authorized retailers. In addition, governments may earmark revenues for specific purposes, such as education.
Since New Hampshire’s establishment of the first modern state lottery in 1964, most states have adopted similar lotteries. Despite the largely positive reception to state lotteries, many critics argue that they are problematic. They allege that they promote addictive gambling behaviors, exacerbate inequality, and increase government dependency on “painless” lottery revenues.
Some states have argued that their reliance on lottery revenues allows them to reduce other taxes, particularly those on working families. The argument, however, has been challenged on several fronts. First, it is unclear whether lottery revenues actually represent a substantial decrease in the overall tax burden on those earning below a certain threshold. Second, lottery revenues tend to accrue primarily to convenience stores and lottery suppliers (whose contributions to state political campaigns are often reported).
Furthermore, some critics have noted that state promotion of the lottery can skew the selection process. These skewing effects, combined with the inherent problems of gambling, raise questions about the appropriate role of the state in promoting this particular form of gambling.