Lottery
A competition based on chance in which numbered tickets are sold and prizes are awarded to the holders of tickets drawn at random. Normally a fixed percentage of the prize pool (generally a proportion of the total receipts) is reserved for costs and profits, with the remainder available for the winners. The prizes can be cash or goods. A lottery may be a state or national scheme or an international organization.
The idea behind a lottery is that people will be willing to hazard trifling sums for a chance at substantial gain. This is an ancient notion, dating back centuries. Alexander Hamilton, at the outset of the Revolutionary War, argued that “as long as men are willing to risk their little, they will be willing to hazard much.” This is why, in his view, governments should use a lottery for public purposes.
Lottery has become a major source of government revenues, contributing billions annually in the United States alone. But it also represents an inefficient way to raise revenue, as many of the players are low-income and less educated, and are disproportionately black or Hispanic. Those groups spend a significant share of their incomes on tickets, and they tend to play in large numbers when jackpots are high.
Lottery playing contributes to America’s debt, and the regressive nature of the spending makes it an inappropriate tool for funding a government budget. Americans should instead save that money to build an emergency fund or pay down credit card debt.
