Lottery is a game in which numbers are drawn at random to determine winners. The winnings can be cash, goods, services, or even real estate. The game has a long record of use in human history, but it only became popular in the United States after World War II. This was a period of widening economic inequality and new materialism that argued anyone could become rich through hard work or luck. Also, anti-tax movements led state governments to seek alternative ways of raising revenues. Lotteries were a good fit, because they did not increase taxes on middle class and working class people.

The first state lotteries were established in the mid-1960s. Most states follow the same basic structure: they legislate a monopoly for themselves; select a public corporation to run the lottery; establish a small number of relatively simple games, and then, prompted by revenue pressures, introduce more complex and innovative offerings over time. During this process, few state officials have a coherent “lottery policy.”

While the underlying mechanics of lottery games are relatively straightforward, the way they are operated and advertised raise important issues. Because lotteries are a form of gambling, advertising necessarily focuses on persuading people to spend their money on tickets. Some critics have raised concerns that this type of marketing promotes problem gambling and other negative consequences, while others argue that it is an appropriate function for a state government to undertake. Moreover, the constant pressure to increase revenues tends to make state lotteries more and more similar to private businesses in their focus on revenue maximization.