Lottery is a method of raising money for a public purpose by offering tickets with numbers on them and selecting winners through random chance. Its use as a means of raising funds has a long history, and it is widely used in states and many countries. Its critics claim that it promotes addictive gambling behavior, is a significant source of illegal gambling and state revenue, and is a regressive tax on lower-income households.
Each state establishes its own lottery laws, but most delegate the administration to a special lottery board or commission that is responsible for promoting, advertising and selling tickets, paying prize winnings, selecting retailers and employees of retail outlets, licensing lotteries, providing training, and ensuring compliance with state law. Generally, the commission determines the size of prizes, how frequently they are offered, and whether or not rollovers (multiple draws with the same winner) are permitted.
State and national governments spend billions on the lottery each year, yet it is often difficult for consumers to understand how much they are contributing to a government fund. By focusing on a fun experience of purchasing a ticket and the slim chances of winning, state lottery commissions send the message that playing is just a way to have some extra spending cash. Educating consumers about the implicit tax they are paying can help people think more carefully about whether or not to play and can also encourage them to consider other methods of raising money for important public uses.
