A lottery is a game in which people pay money for the chance to win a prize based on the random selection of numbers. The prizes range from a few dollars to several million. A state government runs most lotteries. Lottery revenues have grown dramatically in recent decades and are a substantial source of state revenue, supplementing general fund revenues. But the popularity of the games also has raised questions about their desirability and the extent to which they encourage compulsive gambling and regressively affect poorer individuals.

Despite the long odds of winning, many people participate in state-sponsored lotteries, which contribute to billions of dollars annually. While some play for fun, others believe that the lottery may offer a hope of a better life. Whether playing for a big jackpot or a smaller one, most players enter the lottery with an inextricable sense that they are probably going to lose.

State officials often argue that lottery proceeds are a better alternative to raising taxes, which could reduce funding for some state programs. But this argument misses the fundamental differences between a tax and a lottery: Taxation is a mandatory contribution to state government; the lottery, in contrast, gives citizens the choice of paying or not. This difference shapes the nature of public debate about the lottery and influences how it evolves. As a result, few states have a coherent gambling policy or even a lottery policy. Instead, a state’s lottery officials often face decisions that are made in piecemeal fashion and without much public review or scrutiny.