Lottery is an ancient practice, originating in the Han dynasty (205–187 BC). The word lottery is believed to be derived from Middle Dutch loterie, which itself may be from the verb loten, “to draw lots.” Early state-sponsored lotteries were advertised as a way for people to become rich. Lotteries are still very popular, and they have expanded to include many different types of games.
Most state-sponsored lotteries are run as a business, with the goal of maximizing revenues. Advertising focuses on persuading target groups to spend their money on the lottery, such as convenience store operators, supplier companies that sell tickets and supplies, teachers in states where lotteries are earmarked for education, and state legislators who come to expect extra revenue from the lottery. While the money raised by state lotteries does go toward public programs, a significant percentage goes to retailers, ticket sellers, and lottery administrators.
Some state officials promote lotteries as a way to raise taxes without raising fees on the general population, which is a legitimate argument. However, most state governments use a mix of revenue sources and have a variety of expenditures. The fact that lottery revenues are not a large share of the total state budget suggests that it is not an adequate substitute for other revenue streams.
Critics argue that lottery advertising is deceptive, often presenting misleading information about odds of winning, inflating the value of money won by players, and encouraging gamblers to play more to improve their chances of winning. They also contend that state policies that encourage gambling skew political decisions. They point to studies that show that the percentage of people with lower incomes who gamble more heavily relative to their incomes increases as state lotteries are introduced, and they highlight research showing that state laws promoting gambling are associated with higher levels of inequality and poverty.
The regressivity of lottery revenue is obscured because most state-sponsored lotteries are marketed as games of chance and have a high entertainment factor. It is not surprising that they attract people from all walks of life, including the poor, who can afford to buy only a small number of tickets and are likely to be less aware of state tax policies.
People who choose their own numbers or select sequences that are meaningful to them, such as birthdays or ages, have a greater chance of sharing the prize with other winners than those who play Quick Picks, Harvard statistics professor Mark Glickman says. He recommends playing numbers that are not close together, and avoiding those that are common, such as a birth date or the first three digits of your home phone number. In addition, he advises splitting the ticket between odd and even numbers—only about 3% of the winning numbers are all even or all odd. Also, buying more tickets will not increase your chances of winning. Every individual lottery drawing is independent of any previous ones and has its own unique probability.
