In an unnamed small-town American village on June 27, people throng to the town square for an annual lottery, an event that has long been a part of the community. Old Man Warner quotes a familiar proverb: “Lottery in June, corn be heavy soon.”
State lotteries have become widely popular as a means for raising money for public purposes. They are easy to organize and easy to play, and they have wide appeal with the general population. Lotteries can be a very effective source of revenue and can help meet many needs, including public education, infrastructure, social services, and the arts.
Lotteries can be controversial, however. Their critics cite various problems, from their role in compulsive gambling to their regressive impact on lower-income groups. Nevertheless, there is no doubt that lotteries have had an important role in the history of American government and continue to serve an essential public function today.
In general, a lottery is an arrangement in which prizes are allocated by random selection from a pool of applicants or competitors. The prizes may be cash, goods, services, or a combination of them. The total value of the prizes is usually a fixed amount, after expenses (such as profits for the promoter and costs of promotion) and taxes or other revenues are deducted.
Some states, such as Florida and Michigan, operate a single large-scale lottery. Others hold multiple smaller lotteries. A common pattern is for a state to legislate a monopoly; establish a state agency or public corporation to run the lottery; start with a limited number of relatively simple games and, under pressure for additional revenues, progressively expand the number and complexity of the offered lotteries.