Lotteries are a common feature of American state government. The proceeds from these lotteries are used for a wide variety of purposes. Some states use the proceeds to offset the costs of public programs, while others see the proceeds as a useful alternative to tax increases. In times of economic stress, lottery revenues are seen as a way of reducing the burden on taxpayers.
Many critics of the lottery argue that the lottery is a regressive form of gambling that promotes excessive gambling behavior. They also point out the negative impact of promoting gambling on the poor.
Critics of the lottery claim that the lottery provides little evidence that the targeted recipients of lottery revenues are receiving any additional funding. Other concerns involve the alleged deception and misrepresentation of the odds of winning.
Lotteries are also criticized for their high risk of causing compulsive gambling behaviors. This problem is usually accompanied by other problems of public policy.
A key issue in running a lottery is the ability of the lottery to maximize revenues while still focusing on the larger public interest. State officials must respond to pressures from the executive and legislative branches.
Almost every state has some type of legal lottery. Typically, the state legislature establishes an agency to operate the lottery, and then gives the agency a monopoly over the business. As the agency grows in size, complexity, and sophistication, it often expands the number of games it offers.