A lottery is a process in which money or prizes are awarded by chance. People buy tickets for a set price and numbers are randomly drawn to determine winners. For example, lottery winners can win kindergarten admission at a reputable school or an apartment in a new housing complex. The term lottery is also used in sports to dish out draft picks, which are randomly selected by a lottery to determine who gets the best athletes from college.
Lotteries have a long history, dating back to the ancient practice of drawing lots to decide ownership and other rights. In the fourteenth century, the lottery was popular in the Netherlands and England, despite Protestant proscriptions against gambling. The British brought lotteries to America with the Jamestown settlement and the colonization of America itself, and they became common in public and private organizations after that time to raise funds for towns, wars, colleges, and public-works projects.
In the late twentieth century, Cohen writes, a number of states started lotteries, including Colorado and Florida. These lotteries were viewed as budgetary miracles for politicians confronting the skepticism of voters about raising taxes to maintain existing services. Lotteries offered a way to attract revenue without triggering the kind of tax revolt that had swept through California in 1978, causing voters to erect barriers to property and sales taxes.
A person who wins the lottery may choose to receive a lump sum of cash or an annuity, which is a series of payments over a certain period of years. The amount of each payment depends on the specific rules of a particular lottery and state. It is not unusual for someone to play the lottery several times a week, which makes them a “frequent player.” These players are usually high-school educated men in middle age from lower economic classes. Often, they choose their own numbers, which can be a bad idea. Clotfelter explains that many of these people pick personal numbers, such as birthdays or their home addresses. These numbers have patterns that make them less likely to win.
