Lottery appeals to our natural tendency to dream big, selling the idea that it’s possible (albeit improbable) that someone will hit it rich with a few bucks invested in a ticket. The result is that people spend billions each year on lottery tickets. And for state governments, the game is a major revenue generator – even though critics argue that the money is simply a disguised tax on those least able to afford it.
While casting lots for decisions and determining fates by chance has a long history, the first lottery to sell tickets with prizes in the form of money began in the Low Countries in the 15th century, when dozens of towns raised funds for town fortifications and to help the poor. By the late 1700s, private individuals were organizing lotteries to raise money for such things as medical care and cannons to defend Philadelphia during the American Revolution.
While there are many ways to organize a lottery, most have the same basic features: Participants purchase tickets, which have numbers on them that are then randomly selected by machines. Prizes can be anything from electronics and cars to real estate. Many people spend their prize winnings on luxury items, while others invest it to create a source of income. State governments use the proceeds to fund public works projects and social welfare programs. But is this a proper function for government?