A lottery is a game in which you pay for a chance to win a prize. The prize could be anything from money to a new car. The federal law defines a lottery as a game in which “consideration, chance and a prize are offered for sale.” Federal statutes also prohibit the mailing of promotions for lotteries and the sending of tickets in interstate or foreign commerce.
Lotteries are popular with people who want to fantasize about winning big and can afford the small cost of a ticket. Among those who actually play, however, lottery participation is disproportionately skewed by income. Low-income adults, minorities and the elderly are disproportionately represented in the player pool; and those with less formal education tend to play more than those with more education. As a result, critics say that lotteries are a disguised tax on those who can least afford it.
Lottery revenues typically expand dramatically after a lottery is introduced, then level off and may even decline. This erratic revenue pattern has made it difficult for state officials to develop a coherent lottery policy. Instead, they have had to rely on innovation in games and prizes to maintain or grow revenues. The result is that lottery policies have evolved piecemeal and incrementally, with little or no oversight. This process has created a situation in which lottery officials are in effect implementing the policies of their constituents, who are frequently not aware of the policy issues involved.