Lottery is a popular form of gambling where the prize money is decided by drawing lots. It is a widespread practice throughout history, and its roots go back to ancient times. For example, the Old Testament contains several references to dividing land by lot, and Roman emperors used it to give away slaves as part of Saturnalian feasts. It is also a common element in religious ceremonies, including the Jewish Sabbath and Islamic Eid al-Fitr.

The modern state lottery was first introduced in New Hampshire in 1964, and was followed by New York in 1966. Currently, 37 states and the District of Columbia have lotteries. State lottery policy has evolved piecemeal and incrementally, without a general overview or consensus. This has created a situation in which many public officials are running at cross-purposes with the broader public interest.

In many cases, the promotion of lottery has become a proxy for raising state government revenues. The argument is that lottery proceeds are “painless” revenue because players are voluntarily spending their own money (as opposed to taxes, which are perceived as a form of coerced revenue). Lottery revenues have grown rapidly over the past decades, and their popularity seems to be increasing even in the face of strained state budgets.

The main problem with this argument is that the revenue increase from lotteries does not translate to improved state budgets. Moreover, research has shown that the objective fiscal circumstances of states do not appear to play a significant role in the decision to adopt a lottery.