Official lottery is a form of gambling that involves drawing numbers at random to win a prize. Some governments outlaw it, while others endorse it and organize state-sanctioned lotteries. The latter are regulated by statute, specifying such details as the duration of the drawing period and the methods for claiming prizes, the amount that a winning ticket must be worth, and whether or not lottery money can be used to pay criminal fines and court costs.
In the early eighteenth century, Europeans began relying on lotteries to finance everything from town fortifications to charity for the poor. In the seventeenth century, the practice spread to England, where Queen Elizabeth I chartered the first national lottery in 1567. Her profits were designated for “reparation of the Havens and strength of the Realme.” Each ticket cost ten shillings, a substantial sum at the time.
State-sanctioned lotteries continue to be a major source of public funds, even though critics abound. The two most popular moral arguments against them are that they represent a form of unwarranted government spending and that they prey on the illusory hopes of the working classes. Both of these arguments are flawed, Cohen writes.
Studies have shown that the popularity of state lotteries is mainly determined by voters’ perceptions of their benefits. Moreover, the objective fiscal conditions of state governments seem to have little influence on whether or when they adopt a lottery. This may have to do with the fact that state lotteries often appear to be a substitute for increased taxes or cuts in other public programs.