Lottery Regulation and Public Policy in the United States

In the United States, most state governments operate lotteries. They generally offer multiple games, including instant-win scratch-off tickets and daily draw games. The most common form of a lottery involves picking the correct six numbers from a set of balls numbered from one to 50 (some games use less than fifty). Some states also offer other types of gambling, such as keno and video poker. In general, critics charge that state governments are unable to manage gambling effectively, that lotteries contribute to problem gambling, and that the proliferation of these government-run lotteries leads to other forms of illegal gambling.

Some states distribute lottery proceeds broadly, using them for education, business and economic development, and health and human services programs, along with a portion of the general fund. Others direct a much higher percentage of lottery revenue toward prizes. Still, even a small percentage of the total prize pool is significant and can have important benefits.

Lotteries have a long history. The practice of dividing land and slaves by lot has been recorded in the Bible, and Benjamin Franklin organized a lottery to raise money for cannons for Philadelphia. George Washington ran a lotto to sell land and slaves, and the rare lottery ticket bearing his signature now fetches thousands of dollars at auction.

Today, however, public attitudes towards lotteries have shifted dramatically. Whether or not state governments have the right to profit from an activity that many believe promotes addictive gambling behavior, they are inexorably pulled into this area of public policy by popular demand and the pressure to increase revenues. The result is that, in almost every state, a lottery has become a major source of revenue, and officials find themselves struggling to balance the needs of the public with their own desire to increase profits.