A lottery is an arrangement in which prizes are awarded through a process that depends on chance. It is associated with gambling, but it can be used in decision-making situations such as sports team drafts and the allocation of limited medical treatments. It has a long history, with its origins traced to the casting of lots for religious and civil purposes. In its modern form, it is a public lottery in which tickets are sold for the chance to win a large cash prize through a random drawing.

Lottery advertising focuses on the life-changing potential of winning, tapping into the aspirational desires of many Americans. Its messages are repeated on TV, radio and billboards, plus people talk about it in social groups and online. When the grand prize increases, ticket sales surge as well.

But the overall impact of state lotteries is less clear, and some questions should be raised. Lotteries are state-owned businesses, with a primary mission of increasing revenues. In an anti-tax era, this function seems to have broad popular support. But does it work at cross-purposes with the state’s true fiscal health?

Most states follow a similar path in establishing lotteries. They legislate a state monopoly; establish a government agency or public corporation to run the lottery; begin with a small number of relatively simple games; and then, under pressure from continuous demand for revenues, progressively expand the lottery’s scope and complexity by adding new games.