Lottery is a multibillion dollar enterprise that draws on a fundamental human impulse to gamble and hope. It generates revenues for state governments that can then be used to provide public goods, primarily education. It enjoys broad public support, despite the fact that it is essentially gambling. It also attracts a large constituency of specific interests, such as convenience store operators (who can rely on a steady stream of lottery business); suppliers of lottery equipment and services (heavy contributions by these providers to state political campaigns are often reported); teachers, in states where the proceeds are earmarked for education; and of course, regular players themselves.
Most state lotteries were established in the immediate post-World War II period, during a time when states were growing their social safety nets and seeking supplemental revenue sources that would not require painful tax increases or cuts in government programs for those at the bottom of the economic ladder. Since then, state lotteries have become a part of the fabric of American life and are viewed by many as a convenient source of tax relief.
Most states establish a state agency or public corporation to run the lottery, then begin operations with a modest number of relatively simple games. Over time, however, the state typically tries to maintain or increase revenues by introducing new games. Ticket sales rise dramatically with super-sized jackpots, which in turn bring in free publicity and higher interest from potential bettors. A significant percentage of the total pool is then devoted to overhead and profit, leaving the rest available to prize winners.