Despite their inexorable popularity, lotteries are not without controversy. They are a classic example of public policy making that is piecemeal, incremental and decentralized with little overall oversight or accountability, leading to a dependency on revenues that can overtake the public interest. Lotteries are also a perfect example of the power of advertising to manipulate consumers. Lottery ads scream “WIN NOW” and dangle jackpot amounts that are often astronomical, luring people in with the false promise of instant riches.
The word lottery comes from the Dutch word lot, meaning fate or chance. It is believed to be a calque on Middle French loterie, itself a calque on Middle Dutch lotinge. Lotteries are games of chance in which prizes are awarded to individuals or groups based on a random selection process. The prizes may be goods or services, such as cars or houses.
Lotteries were popular in the early American colonies, where they helped finance many projects, including paving streets and building wharves. Benjamin Franklin tried to organize a lottery in 1776 to raise money for cannons to defend Philadelphia against the British. Even after the Revolution, private lotteries continued to flourish, helping fund such institutions as Harvard and Yale.