The History of the Lottery

The lottery is booming, with Americans spending $100 billion per year on tickets. It’s the most popular form of gambling in the country, with 50 percent of American adults buying at least one ticket each year. But this popularity wasn’t always the case, and the lottery has a complicated history as both public and private game.

State lotteries have emerged across the country in remarkably similar fashions: each establishes a state agency or public corporation to run it; starts with a relatively small number of games; and, in response to constant pressure for revenue increases, progressively expands its portfolio with new offerings. The result is that each lottery’s revenue growth tends to peak at a certain point, after which it begins to decline.

The decline is usually marked by a shift from traditional games to “instant” lotteries, such as scratch-off tickets, which have lower prize amounts and much higher odds of winning. These changes have had profound effects on the nature of the games and the players who play them.

Many critics argue that the rapid rise in instant games is symptomatic of state governments’ inability to control gambling and other forms of compulsive behavior, and that the lottery’s expansion into these types of games undermines its ability to raise needed revenues for education. Other critics argue that the popularity of the lottery is a sign of rising social inequality, fueled by a new materialism that suggests anyone can get rich with enough effort or luck.