An Official Lottery is a lottery game that typically runs on the state or city government. During the game, people buy tickets and then pick numbers from a random number generator. When you match the numbers, you win some of the money you spent on the ticket, and the government gets the rest.
The official lottery dates back to medieval times when it was used to build town fortifications and provide charity. But the modern lottery was invented in New Hampshire in the 1960s and has become a major source of state revenue.
Why the lottery is a big business
When America’s economy was struggling in the nineteen-sixties, balancing budgets without raising taxes or cutting services became increasingly difficult. As many states sought a solution that would not enrage an anti-tax electorate, they started looking for ways to raise revenue.
One of the most popular was legalization of the state lottery. This was marketed as an economic panacea, with revenues supporting K-12 and college education as well as public parks, veterans’ benefits and elder care.
But as a study by the Howard Center found, lottery revenues actually support less than half of that, with most of the money going to state governments rather than to the schools. In addition, lotteries are regressive, with lower income communities spending more on tickets than higher-income areas.
This is because the majority of low-income Americans have no financial skills or resources to invest in the stock market, and are more likely to play instant scratch-off games than big jackpot drawings like Powerball. Studies have shown that this disproportionately affects Black and brown communities.