A lottery is a game in which numbers are drawn to win prizes. Lotteries have a broad public appeal, but they also provoke considerable controversy. Their widespread popularity has created problems that can only be resolved by a careful consideration of the issues involved. The basic problem is that state governments have become dependent on the revenues they generate from lotteries and are constantly pushed by the legislature to expand their operations.
Initially, state lotteries were little more than traditional raffles, wherein the public purchased tickets to enter a drawing at some future date. Since the 1970s, however, innovations have transformed the industry. State lotteries now offer a wide range of instant games, with lower prize amounts but higher odds than those for traditional drawings. The popularity of these games has led to a constant expansion into new forms of gambling, including video poker and keno.
Lottery revenues have grown tremendously, but they tend to peak and then decline over time. To offset this, lottery operators regularly introduce new games to maintain or increase the number of people playing the lottery.
The popularity of lottery games varies considerably by social class. The rich play a much greater proportion of the time than do the poor. And while there are some important exceptions, most low-income persons do not participate in the lottery at rates significantly different from those of their wealthier counterparts. The result is that, despite its popularity, the lottery is not a significant source of income for lower-income groups and it is likely to continue to be so.