In a lottery, numbers are drawn at random for prizes ranging from small items to large sums of money. People often use the term to describe any scheme whose outcome is determined by chance, such as selecting jurors, awarding scholarships or deciding who will receive subsidized housing units. Lotteries are typically regulated to ensure fairness and legality.
Americans spend over $80 billion on lottery tickets every year – that’s almost $600 per household! Instead of buying a ticket, you could use that money to build an emergency fund or pay down credit card debt. But the chances of winning are slim – you’re more likely to be struck by lightning or become a billionaire!
Despite the low odds of winning, state governments are raking in huge profits from lottery revenues. In 2002, thirty-nine states and the District of Columbia reported revenues of $42 billion, double the figure recorded just seven years earlier. Supporters say the games are a painless alternative to raising taxes. But critics charge that they are deceptive and regressive. And those who win often find that the money doesn’t make them happier.
The first public lotteries were organized in the Low Countries during the 15th century to raise funds for poor relief, town fortifications, and other purposes. The word lottery is believed to be derived from the Dutch noun lotte, meaning “fate” or “luck”. Modern states have created state-run lotteries and have special agencies to oversee them. They create laws regulating the games, select and license retailers, train employees of those retailers to sell and redeem lottery tickets, promote the games, and verify that retailers and players comply with the law.