The idea of determining fates by drawing lots has a long history in human culture, including several references in the Bible. In modern times, making money by lottery has been a common way for states to finance everything from public works projects to education. Despite the fact that state governments profit from gambling and can easily become dependent on its revenue, few, if any, have a coherent policy on the subject. This is largely because policy decisions are made piecemeal and incrementally, with different departments having a competing interest. In many cases, the authority and pressures on officials are fragmented between legislative and executive branches, and even within each branch, partisanship often prevails.

The lottery is a form of gambling, in which participants pay a small amount of money to enter the drawing for a large prize. Most state lotteries are run as public enterprises and rely on broad public support. The main message promoted by state lottery operators is that playing the lottery is a fun and harmless activity. The operators also point out that lottery revenues are a good alternative to raising taxes or cutting public programs.

While the revenues raised by lotteries do improve certain public services, they have a regressive impact on the poorest residents. People from lower income families spend a larger proportion of their incomes on tickets and have worse odds of winning. In addition, a large share of ticket proceeds is spent on advertising and promotional activities.