A lottery is an arrangement by which prizes are allocated by a process which depends wholly on chance. Prizes may be cash or goods and services. The word lottery is probably derived from the Middle Dutch Loterie, or perhaps a calque on the Middle French Loterie.
The first modern government-run lottery was established in Puerto Rico in 1934 and New Hampshire followed in 1964, launching an industry that now includes 45 states and Washington DC along with the territories of Guam and Puerto Rico. Each state offers lottery games specific to their jurisdiction, but all participate in the Powerball and MegaMillions national lotteries.
Until the 1970s, lotteries were little more than traditional raffles in which people purchased tickets for a drawing at some future date, weeks or months away. But in the 1970s, instant games were introduced, which dramatically changed the industry. These games had lower prizes, but the underlying concept remained the same – an individual could win money by covering numbers on a ticket with their finger.
Critics argue that while the lottery raises some money, it is a costly and inefficient way for governments to collect revenue and that it promotes gambling behavior among the poor and other vulnerable groups. Moreover, they charge that it runs at cross-purposes with the public’s welfare because state officials are driven by the desire to increase revenues rather than a general concern for the welfare of citizens. However, supporters point out that the benefits of the lottery far exceed its costs and that the government’s primary responsibility is to protect its citizens from harmful gambling activities.