Lottery is a type of gambling in which people purchase chances to win money or prizes. The odds of winning vary according to the number of tickets sold and the methods used to draw winners. For example, a lottery might involve picking the correct numbers from a pool or a machine might spit out numbers randomly. In the United States, state governments run many different lotteries.

Lotteries were once hailed as an efficient way for states to raise funds and pay for public projects without placing onerous burdens on working-class citizens. This was particularly true in the immediate post-World War II period, when the influx of lottery revenues allowed states to expand their array of social safety net services while avoiding especially onerous taxes on middle class and working class Americans.

However, this arrangement may have run its course. The growth of state lottery revenues has stalled and lottery officials are now experimenting with new games, including keno and video poker, to try to spur fresh interest. The expansion of the industry is raising serious questions about whether it is appropriate for state government to promote a form of gambling and, even if it is, whether it does so in an effective and ethical manner.

The history of lotteries offers an illuminating case study in how the decisions made at the moment of state lottery establishment can have a long-term impact on state policy. The evolution of state lotteries is a classic instance of the piecemeal and incremental nature of public policy making, with authority fragmented across the executive and legislative branches of each state and even within each branch. This leads to the creation of a complex interplay of policy issues that state officials can do little to control.