A competition based on chance in which numbered tickets are sold and prizes are awarded to the holders of the winning numbers. In most lotteries, a large prize is offered along with many smaller prizes. The word lottery derives from the Old English noun lot, meaning “fate” or “destiny.” The Old Testament instructs Moses to take a census of the people and divide the land among them by lot, while Roman emperors used lotteries to give away property and slaves. Modern lotteries are commonly used to fund state or charitable causes and to promote commercial products.
A modern example of a lottery is the selection of jury members from lists of registered voters. However, to be classified as a gambling type of lottery, payment of some consideration must be made in exchange for the opportunity to win the prize. In the United States, the acceptance of lotteries began to decline in the 1830s, in part because of evangelical efforts against it. In addition, the Panic of 1837 undermined people’s confidence in infrastructure funded by public financing.
Since lotteries are run as businesses with the goal of maximizing revenues, advertising necessarily focuses on persuading target groups to spend their money on the tickets. This raises questions about whether the promotion of gambling is an appropriate function for state agencies, particularly given the negative consequences that can be associated with it (e.g., poverty, problem gambling). In general, it is difficult to develop a coherent “lottery policy” because lottery officials are often at cross-purposes with the public interest.