A competition based on chance in which numbered tickets are sold and prizes are awarded to those whose numbers are selected at random; often sponsored by a state or organization as a method of raising funds.
Lottery play tends to increase with income, but there are also a variety of socio-economic factors that affect participation, including age, gender, race, religion and education level. Men play more than women; blacks and Hispanics less than whites; the young and the old play at lower rates; and Catholics tend to play more than Protestants. Lottery play also declines with formal education, which is a clear result of the fact that people are more likely to gamble in a game where they have a higher skill set.
The first state-sponsored lotteries appeared in the Low Countries during the 15th century. Town records from Ghent, Utrecht and Bruges show that public lotteries were used to raise money for town fortifications, as well as to help the poor.
Initially, lottery revenues grew rapidly after introduction and remained high for a time, before they began to plateau. The reason is that lottery officials and other players quickly become accustomed to the revenue. Politicians then begin to look at lotteries as a “painless” revenue source, and voters start to view them as a way to get more services for their taxes without paying a larger tax bill.
The other issue is that as revenues plateau, the incentive to play begins to wane. To maintain or even increase revenues, new games must be introduced regularly. Many states now offer a range of instant games, including scratch-off tickets and online games. Lottery retailers are also increasingly important players in the industry, and retailers and lottery personnel work together to make sure that merchandising and advertising campaigns are effective.