A lottery is a form of gambling in which numbers are drawn to determine winners. Typically, state-sponsored, it offers a prize of money or goods and is governed by a set of rules. The concept has spread throughout the world and is used in many different ways. Whether it is used to dish out kindergarten admissions at a prestigious school or to select the first draft pick for a sports team, lotteries are often seen as fair processes that generate high levels of demand from those hoping to benefit.

The modern state lottery began with New Hampshire’s establishment in 1964. Since then, most states have adopted a lottery system. However, the evolution of state lottery policies has been a classic example of public policy being made piecemeal and incrementally, with little overall overview and with a heavy dependence on state revenue streams that are inherently vulnerable to political pressures. The result has been that the lottery is at cross-purposes with state government goals, including reducing dependence on income taxes and improving social welfare programs.

The promotion of the lottery is a particular challenge because it requires a large investment in advertising and must be done at a level that attracts people with a propensity to gamble. It is no surprise that research shows that those who play the lottery are disproportionately from middle-income neighborhoods, with fewer low-income and high-income participants than might be expected. In addition, the lottery promotes a false image of a quick route to riches. This has real-world consequences: it encourages young people to seek shortcuts and can increase the number of high-risk financial investments.