Lottery is a popular form of gambling in which numbers are drawn to determine winners. A large number of state governments have established lotteries, which raise billions in revenue each year. Lotteries differ from other forms of gambling in that winning the lottery does not depend on skill or chance; rather, the odds of winning a prize are determined by the size of the jackpot and the overall pool of participants. A number of issues have emerged surrounding the operation and popularity of lotteries, including concerns about compulsive gambling and regressive effects on low-income communities.
State lottery officials have responded to these concerns by establishing a wide variety of games and promoting the lottery through advertising. Many lotteries have teamed up with sports franchises and other companies to provide products as prizes, in which both the lotteries and the merchandising partners gain product exposure and money from the promotional effort. In addition, lotteries have shifted away from traditional forms of the game to more advanced offerings such as keno and video poker in order to increase revenues.
State legislators and voters have largely adopted a policy of tolerance for the existence of state lotteries, but they have often failed to define an appropriate role for them. Lottery revenues are not explicitly voted on and passed through the legislative process, unlike state taxes, and are therefore less transparent. The resulting dependence of state government on lottery revenue is often a source of friction and controversy.