The Benefits of Lottery

Lottery is a form of decision making by giving a chance to each person or group for a specific opportunity. It can be used in deciding who gets an award, position on a sports team, placement in a school or university and many other things. The lottery has a history going back thousands of years. It is believed that the earliest lottery drawings were keno slips from the Chinese Han Dynasty (205 and 187 BC) and are thought to have helped fund major government projects such as the Great Wall of China.

For a long time, the principal argument for the adoption of state-sponsored lotteries has focused on their value as a source of “painless” revenue: lottery revenues are voluntarily spent by players to fund government services that would otherwise be funded by onerous taxes or cuts in other state programs. This is a very powerful argument in times of economic stress, when the prospect of tax increases or cuts in social welfare programs can be particularly distasteful to voters.

But even in these times of financial stress, there are reasons to be skeptical about the claims that lotteries do no harm and actually improve state governments’ fiscal health. Lottery revenues are only a small percentage of total state revenues, and the proceeds have not been sufficient to eliminate the need for higher taxes or reduce cutbacks in other areas.

Moreover, lotteries are notoriously wasteful of state resources. Their high advertising costs and large jackpots inevitably result in a big slice of the state budget being dedicated to promoting the games.