A lottery is a game in which a prize, often money, is distributed through a random drawing. It is associated with gambling but also plays a role in other decision-making scenarios, from sports team drafts to the allocation of limited medical treatments. The practice is ancient, with the casting of lots having a long record in human history as a way to determine fates and distribute material wealth.

Historically, states have introduced lotteries to raise revenue that could allow them to expand their social safety nets without the onerous burden of additional taxes on working families and the middle class. After World War II, this arrangement became increasingly untenable, particularly as inflation rose and state budgets were stretched to the limit.

The first modern lottery was established in New Hampshire in 1964, and was quickly followed by many others. It was promoted by politicians who saw it as a painless revenue source, something voters would happily spend their hard-earned dollars on to pay for education and veteran’s health care, without having to raise their own taxes.

But the message is a bit deceptive, because even though most of the proceeds from ticket sales go into the prize pool, it doesn’t all end up in the hands of the winners. A good deal of the prize money ends up going to administrative and vendor costs, as well as toward whatever projects each state designates it for. In 2023, that totaled over $5 billion.