Lottery is a popular way for state governments to raise money. It’s easy to organize, widely popular with the public, and able to reach a broad constituency. Despite these advantages, lottery adoptions have been remarkably uniform across the states: The states establish a monopoly for themselves (although some have licensed private firms in return for a share of the profits); begin with a small number of relatively simple games; and, due to pressure to maintain or increase revenues, gradually expand their offerings.
Lotteries are a form of gambling that relies entirely on chance. Even if the prize amounts are modest, they can still be a significant sum of money. And, since the chances of winning are so slim — there’s a much greater likelihood of being struck by lightning than becoming a billionaire — it isn’t surprising that people find them addictive.
The desire to dream big is a powerful force, and it’s one that the lottery capitalizes on. But the fact that people can lose so much in a very short period of time makes it even more difficult for them to quit. And, as the jackpots have gotten bigger and bigger, the number of people who buy tickets has continued to rise.
People’s basic misunderstanding of risk and reward also works in the lottery’s favor, Matheson says. “If people were really good at calculating expected value, they wouldn’t buy tickets,” he says. “But because they’re not, the lottery can keep generating more and more revenue.”
Many people believe that the lottery is their last chance at a new life. The advertising on television, in print ads, and on billboards dangles the promise of instant riches. In a society with wide inequality and limited social mobility, this is a tempting offer.
But there are some other important things to consider when thinking about whether or not the lottery is right for you. Lotteries are a great way to spend money, but they’re not an investment that will necessarily give you a good return. You should always treat them like any other spending decision and be sure to set a budget for how much you’re willing to spend.
The word “lottery” has a variety of meanings, according to Merriam-Webster. It can refer to a game of chance in which tokens are sold and the winners are selected by lot; it can also refer to the selection process used in government or business, such as when the company assigns space in the parking lot or when the government decides who to hire. The word is also commonly used to describe an event or activity whose outcome depends on chance, such as combat duty: “Life’s a lottery,” the soldiers thought. “You never know what’s going to happen.” (A version of this article first appeared on HuffPost.) Copyright 2016 Houghton Mifflin Harcourt Publishing Company. All rights reserved. Unless otherwise noted, all examples are from the Merriam-Webster online dictionary.