A competition based on chance, in which numbered tickets are sold for prizes. Lotteries are a popular way to raise money, especially for state governments and charities. The practice dates back centuries. The Old Testament records God telling Moses to divide land by lot, and Roman emperors gave away property and slaves by lottery.
Lottery winners can choose to receive their winnings in a lump sum or spread them out over time. Lump sum payments can seem like a windfall, but they require disciplined financial management to ensure long-term security. If winners are unable to control their spending, they may find themselves in financial trouble. A spate of crimes associated with compulsive lottery playing, from embezzlement to bank holdups, captured headlines and prompted some states to run hotlines for problem gamblers.
While a few states have dropped the lotteries, others are expanding them to new games and intensifying their marketing. These efforts have raised a great deal of money, but they also obscure important questions about the role of state government and society in promoting gambling addictions.
In the immediate post-World War II period, state officials saw lotteries as a way to expand a variety of services without imposing onerous taxes on the middle and working classes. But as the economy slowed in the 1960s, this arrangement crumbled. In many cases, the lottery has not brought the promised social mobility that states hoped for and has instead become an addictive form of gambling, largely for the poor.