The casting of lots for decisions and fates has a long history in human society, and the lottery is its modern manifestation. The modern state lottery emerged in the United States in the late 1950s, and since then it has become one of the most popular forms of gambling. In fact, it is now the dominant form of legalized lotteries in the country, with 37 states and the District of Columbia operating them. Yet, despite the lottery’s enormous popularity, critics argue that it encourages addictive gambling behavior, leads to illegal activities, imposes a heavy regressive tax on low-income communities, and contributes to many other social problems.

Regardless of the nuances of each state’s lottery rules and regulations, however, there is considerable consistency in the arguments for and against its adoption, the structure of the resulting state lottery agency, and the evolution of the lottery’s operations. These operations are driven by the ongoing needs of state governments to generate new sources of revenue and by the resulting pressures on lottery officials to increase revenues.

A common argument in favor of a lottery is that the proceeds are directed to public goods such as education or other community benefits, thus avoiding reliance on taxes and reducing the potential impact of budget cuts or revenue declines. This is a strong and persuasive argument, but studies suggest that it is not the only factor in determining lottery popularity. The objective fiscal circumstances of the state government, on the other hand, do not appear to have much influence over lottery approvals.