A lottery is a process of drawing lots to determine winners of prizes, often money. Many states and countries operate lotteries, a form of gambling. The money raised by lotteries can be used for a variety of public purposes, including education, health, and welfare. Lotteries are also criticized for encouraging addictive gambling and having regressive effects on lower-income groups.
The first recorded lottery took place in the Low Countries in the 15th century, when towns held drawings to raise funds for town walls and fortifications. Benjamin Franklin sponsored a lottery in 1776 to raise money for cannons to defend Philadelphia against the British. Thomas Jefferson attempted a private lottery to ease his debts, but it failed.
State governments have generally followed similar patterns in adopting and running their lotteries. They legislate a monopoly; establish a state agency or public corporation to run the lottery; begin operations with a modest number of relatively simple games; and, due to constant pressure for additional revenues, progressively expand the lottery in size and complexity, particularly by adding new games.
Despite criticisms of their regressive impact on lower-income groups, lotteries usually retain broad popular support. This is especially true when their proceeds are earmarked for specific public purposes, such as education. But a study by Clotfelter and Cook suggests that this is largely because of the strong and well-organized support by a range of specific constituencies, including convenience store operators; lottery suppliers (who donate heavily to state political campaigns); teachers (in those states in which lottery revenue is earmarked for education); and politicians (who have come to depend on the lottery as an easy source of painless government revenues).