A lottery is a game in which numbers are drawn for a prize. Lotteries are often run by states, with the prize money funding a variety of public projects. While the lottery has become a popular form of gambling, there are concerns about its impact on compulsive gamblers and its impact on low-income populations. State governments are also concerned about the amount of time spent on lottery activities and the amount of money that is diverted from other sources of revenue.

The development of lotteries has been driven by the need to generate revenue. Governments at every level are becoming dependent on “painless” revenues, and pressures always exist to increase the lottery’s revenue base. As a result, lotteries are running at cross-purposes with the general public interest. It is important to understand the factors that drive this dynamic and how it plays out in practice.