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Public Policy and the Lottery

The lottery is a type of gambling wherein numbers are drawn in order to determine the winners. The prizes in a lottery can range from cash to goods and services. In the case of financial lotteries, the money is usually used for public good, such as subsidized housing units or kindergarten placements in a reputable school. There are also private lotteries, where people pay to try and win a prize. The word ‘lottery’ has its origins in Middle Dutch, and may be a calque on the French term loterie, itself derived from the action of drawing lots.

Historically, state governments have adopted and operated lotteries to raise money for public purposes. Many of the earliest lotteries were used to fund construction projects such as roads, bridges, canals, and wharves. The practice continued in colonial America, where lotteries helped to finance the founding of Harvard and Yale, as well as public works projects like paving streets and building schools. Lotteries also became a major source of funds for local militia and the American Revolution.

Today, there are 37 states that operate a state lottery. The evolution of these lotteries is a classic example of public policy made piecemeal and incrementally, with little or no overall overview. In the process, government officials often inherit policies and a dependency on revenues that they can do little to change. In an era of anti-tax policies, this can be problematic.