The official lottery is a government-sanctioned method of raising money for public services. Typically, participants pay a small amount of money in exchange for a chance to win a large sum. Modern lotteries include government-run games such as the New York State Lottery, and commercial promotions like raffles in which people can win property or merchandise for a fee. In either case, the winnings are deposited into state coffers.

Early lotteries aimed to fill state coffers without increasing taxes, making them popular with voters worried about the rising cost of living. The premise, however, was flawed. The first legalized lotteries wildly overstated the amount of money they could generate, and the proceeds remained minimal compared to overall state budgets. In its first year, for instance, the California lottery’s proceeds accounted for only about five per cent of education funding.

By the late seventies, legalization advocates had shifted their tactics. They stopped arguing that a lottery would float all of a state’s budget and instead framed it as a way to fund one specific line item, often education but also elder care or public parks. This approach made legalization campaigns much easier. It also disarms critics who argue that the lottery violates a fundamental principle of government, that it is unethical for governments to sell gambling tickets.

The New York State Lottery, which was America’s first state lottery, opened in 1967 with the promise of using revenue to fund education. The lottery has raised billions for the state since then and is considered one of the most successful in North America.