The lottery is a form of gambling in which prizes are allocated through a random process that relies entirely on chance. The prizes may be money, goods, services, or other property. Lottery prizes are usually awarded by a state government through a specialized division of its government, called a lottery board or commission. State laws define the prize structure, rules for purchasing tickets and redeeming winning tickets, and other relevant details. Lotteries are popular among many people and are often associated with high levels of civic participation.
While a large number of states have adopted state lotteries, the debate about their merits and disadvantages continues. Some of the most intense criticisms have centered on issues such as the regressive impact of lottery revenues and the problems with compulsive gamblers. However, these criticisms miss the mark because they are based on specific features of the operation rather than on general public policy concerns.
Lottery revenues are a critical source of state revenue, and most of the time, politicians promote their adoption with the argument that they provide a painless alternative to tax increases or cuts in state services. This argument appears to be a persuasive one, as lotteries have consistently won broad support in all states where they are legal.
Nevertheless, the fact remains that state lotteries are fundamentally different from most other state government functions. They are designed as a business, and they must be run like one in order to maximize revenue. This design leads to a special form of governance, in which decisions are made piecemeal and incrementally, and in which the overall welfare of the public is taken into account only intermittently, if at all.