Lottery is a form of gambling that involves paying for a chance to win a prize, typically money. Lottery prizes can range from small cash prizes to large sums of money. Lotteries can be legal or illegal, and are often organized by government agencies. Federal law prohibits lottery promotions by mail or telephone, but does not regulate state-run lotteries.
Lotteries have been widely used for public and private purposes throughout history. They became common in colonial-era America, raising funds for everything from paving streets to building churches. Benjamin Franklin sponsored a lottery to raise money for cannons during the American Revolution, and Thomas Jefferson tried a private lottery to alleviate his crushing debts.
In modern times, state governments have adopted lotteries to increase tax revenues or provide funds for specific programs and services. The popularity of these lotteries has largely been due to the fact that they are seen as a painless way to raise money, and because they tend to appeal to broad constituencies. These include convenience store owners, whose profits are often used to finance lottery promotions; suppliers, who make large contributions to political campaigns; teachers (in states where lottery proceeds are earmarked for education); and state legislators, who quickly develop a taste for the new revenue.
The establishment of a state lottery typically follows a pattern: the legislature establishes a monopoly for itself; creates a state agency or public corporation to run the lottery (instead of licensing a private firm); begins operations with a modest number of relatively simple games; and then, due to pressure for additional revenues, gradually expands the scope of the lottery’s offerings. The expansions are often driven by the need to attract new players and to keep existing ones.