A lottery is a form of gambling whereby numbered tickets are sold and a drawing held for prizes. In the United States, state governments run most lotteries. It is a popular form of raising funds for a variety of purposes, including public works, charity, and education. The lottery is also popular with individuals who wish to win a large sum of money, often without the need for substantial effort or expense. In the early 21st century, many Americans spend over $80 billion annually on the lottery.
The word lottery derives from the Dutch noun lot, meaning “fate.” The first recorded lotteries were held in the 15th century to raise funds for town fortifications and to help poor people. Lotteries were widely used in Europe after the 1500s, and in the American colonies they helped establish several major colleges, including Harvard, Dartmouth, Yale, King’s College (now Columbia), Union, William and Mary, and others.
Despite the widespread popularity of lotteries, there are important reasons why they should not be considered an alternative to other forms of taxation. One key reason is that the objective fiscal circumstances of a state do not appear to influence whether or when a lottery gains public approval.
Moreover, once a lottery is established, the policy decisions that govern it are typically made piecemeal, with the results being that state officials are dependent on revenues they cannot control and which may increase or decrease with the whims of the market.