Lottery is a game of chance where numbers are drawn randomly. It is also a popular form of gambling, encouraging people to pay small sums in order to have an opportunity to win large amounts of money. Often administered by state governments, lottery revenues are a major source of income in many states.
In the immediate post-World War II period, it seemed that lotteries would allow states to expand their social safety nets without the kinds of steep taxes that might be imposed on low- and middle-income families. The reality is much different. In most states, the majority of lottery revenue is collected from a player base that is disproportionately lower-income, less educated, nonwhite, and male. And when these players do win, they are not just going to spend their winnings on a new home or car; they are going to have to shell out a significant chunk of it for federal and state taxes.
In addition to marketing their games, lottery officials must also manage the public’s perception of their operations. It is not an easy task, given that state lotteries are essentially government-run businesses with the goal of maximizing revenues. Advertising necessarily focuses on persuading target groups to spend their money on tickets. This, in turn, raises questions about the morality of promoting gambling and the extent to which lottery operations are at cross-purposes with the state’s larger public interest.