Lottery is a game of chance involving the drawing of numbers for a prize. It is an ancient practice, with roots in the Bible, the Roman Empire (Nero was a big fan), and medieval Europe. In the seventeenth century, colonial America used lotteries to finance public projects, including roads, churches, libraries, canals, and colleges. Lotteries also fueled smuggling, as lottery tickets and stakes were regularly mailed across borders despite official postal restrictions.
Lotteries are popular because they provide a large source of revenue for state governments without raising taxes. They are therefore particularly attractive to politicians in an anti-tax era. The result has been that lottery profits increasingly dominate state revenues, and as the profits have grown, the games have become more elaborate.
Cohen’s story is about how this happens. He points out that the growth of lotteries in America started when state governments discovered the profits they could make and, in an era of rising inflation and the cost of the Vietnam War, found it difficult to balance budgets without increasing taxes or cutting services.
As with most commercial products, the popularity of lottery games varies with economic fluctuations. During times of high unemployment or poverty, for example, sales increase. But lottery advocates argue that the players are responsible for their own spending decisions and the fact that sales rise at these times is no proof of any structural problem in the system. In fact, it is a simple case of supply and demand.