The practice of distributing property and other things by lot has long been an important part of human history. Its use in determining fates and distributing goods has been used since ancient times, including many instances in the Bible. The first recorded public lottery offering tickets with prizes of cash was in the Low Countries in the 15th century, when towns held lotteries to raise money for town fortifications and to help the poor.
Generally, lotteries have been regarded as a painless form of taxation. They attract significant amounts of public approval because people believe that their funds will be spent for good. Lotteries are especially popular during economic stress, but they also win broad support in normal times. The fact that lotteries have proven to be a painless way of raising revenue has encouraged states to devote more and more resources to them, which in turn has led to the expansion of games and the growth of their marketing programs.
While there are plenty of people who do not understand how the odds work and have developed irrational beliefs about their favorite numbers and lucky stores and time of day to buy, most players enter with clear eyes. They know that the chances of winning are slim, but they are willing to risk a few dollars for a shot at fame and fortune.
The way state lotteries are established and operated today is a classic example of how policies in general, and gambling policy in particular, develop piecemeal and incrementally, with little or no overall overview. In the process, a host of problems emerge, such as the prevalence of compulsive gambling, the regressive impact on lower-income groups, and the reliance on lottery revenues for the funding of state government functions.
