A competition based on chance in which numbered tickets are sold and prizes are awarded to the holders of numbers drawn at random. Also called sortilege, sortilegium, and the drawing of lots.
Historically, state lottery proponents have argued that the money raised is “painless” revenue, since players voluntarily part with their funds instead of being taxed directly. However, studies show that lottery play imposes a disproportionate financial burden on lower-income players, who tend to spend a larger share of their income on tickets than do players with greater means.
In addition, the majority of lottery revenues come from a small percentage of committed players who buy tickets frequently. Those players tend to be young, less educated, and nonwhite. Some critics argue that these players are irrational and that the lottery system encourages them to play recklessly and waste their money.
Others have argued that the lottery is an important source of funding for public goods, and that it reduces the need for state governments to raise taxes or cut programs. However, these arguments have been largely unsuccessful in winning popular support for lotteries. Indeed, the popularity of state lotteries has shown little correlation with a state’s actual fiscal condition. Rather, the main reason that state governments adopt lotteries is the promise that they will raise large amounts of money for public purposes. Even though lottery proceeds do provide some public services, they are often not enough to offset a reduction in other government funding.