Lottery is a fascinating study in human behavior and our relationship with mathematics. The chance of winning the jackpot is conventionally one in tens of millions, yet people continue to buy tickets, drawn by the prospect of a life-changing amount of money. Lottery advertising plays on this aspirational desire by portraying prior winners in scenarios of wealth and happiness, and it is no coincidence that lottery revenues expand dramatically soon after they are introduced.
The word lottery comes from the Latin term loterie, meaning “selection by lot,” and it is defined in law as an arrangement “wherein prizes are allocated by a process that depends wholly upon chance.” Prizes may be anything from cash to goods or services. Generally, state governments adopt laws creating a monopoly and establishing a state agency or public corporation to manage the lottery. These agencies typically delegate to a separate lottery division the responsibility for selecting and licensing retailers, training employees of those retailers to use lottery terminals, selling and redeeming tickets, paying high-tier prizes to players, and ensuring that retailers and players comply with the state’s laws and regulations.
For many, lottery play is a harmless pastime, allowing them to indulge in fantasies about winning fortunes for the cost of a few bucks. But for some—often those with the lowest incomes—it can become a significant budget drain. Numerous studies have shown that low-income households account for a disproportionate share of lottery players, who often spend a large percentage of their disposable income on tickets.