A lottery is a game where people pay for a chance to win a prize. Governments often run lotteries to raise money. Some examples of lottery prizes include units in a subsidized housing block or kindergarten placements. The casting of lots has a long history in human society, but lotteries that award material goods have become especially popular in recent times.
A public lottery is a classic example of a government agency that operates in an environment of limited resources and competing demands on its authority. In this environment, policy decisions tend to be made piecemeal and incrementally, with little oversight or general overview of operations. Lottery officials, for example, face constant pressure to increase ticket sales and the number of games offered in order to raise revenues and keep pace with competition from private firms that offer similar products and services.
Historically, state lotteries have been successful in gaining and maintaining broad public approval by portraying themselves as a “public good.” They are often presented as a way to fund education or other social welfare programs, and they can also be promoted on the basis of their “fairness” and the degree to which they promote equality of opportunity. However, research shows that the popularity of a lottery is not closely connected to its perceived fiscal health; in fact, lotteries have been able to gain and retain broad public support even during periods when state governments are in relatively good financial condition.