A competition based on chance, in which numbered tickets are sold for the privilege of participating in a drawing that awards prizes. The prize amount may be set by law or determined by a promoter. Lotteries are often conducted to raise money for public or charitable purposes. The term is derived from the Dutch word lot, meaning fate. The use of lots to determine distribution is recorded in the Old Testament (Numbers 26:55-55) and by the Roman emperors as an entertainment at meals (a popular dinner entertainment was apophoreta, in which pieces of wood bearing symbols were distributed, with winners determined by lot).

In modern times, lottery proceeds are usually used for education or to reduce state deficits. They are an alternative to raising taxes or cutting services, and the broad public support that they enjoy reflects this. But the public’s enthusiasm for the idea of winning big sums also obscures the regressive nature of lottery profits and the harms that they do to low-income people.

Lottery advertising relies on two messages primarily. One is to stress the benefits that will flow from a state’s investment in education and other public needs. This argument is especially effective during periods of economic distress, when state governments are seeking to avoid raising taxes or cutting services. However, studies by Clotfelter and Cook find that the popularity of lotteries is not correlated to a state’s fiscal health; it seems to be more of a political response than a reflection of objective state finances.

The other message is to sell the idea that winning the lottery is just a fun, harmless way to spend time. This is a much more difficult pitch to make. It is a lie that is hard to dispel, because the experience of buying a lottery ticket is inherently fun. But the fact that winning the lottery is a long shot undermines this claim. The odds of matching all six numbers, for example, are 1 in 13,983,816.

The regressive nature of lotteries is further underscored by the fact that they tend to attract players from lower-income neighborhoods. As a result, the proportion of state lottery revenue that comes from this segment of the population is significantly higher than that of the total pool of lottery players and buyers. This disproportionately high share of low-income participants is a source of continuing controversy over the fairness of state lotteries. It is also an indication of the need to improve educational and economic opportunity for all Americans. As a policy matter, states should consider shifting their funding sources away from the lottery to a more equitable and sustainable model. In the meantime, it would be wise for policymakers to focus on other ways to improve social mobility and eliminate inequality. They might start by examining the best practices from other nations that have successfully reduced poverty and improved educational outcomes. They might also learn from other areas that have embraced innovative approaches, such as the city of Seattle, which has taken steps to help poor children overcome obstacles and thrive in school.