Official lottery are games of chance that are run by governments for the purpose of raising money to fund public projects. In the United States, state lotteries are governed and operated independently of each other, although consortiums of state lotteries operate games spanning larger geographic footprints. Historically, the proceeds from state lotteries have been used to fund public works projects, such as roads, canals, and ferries. Some state lotteries have also been used to fund educational initiatives. For example, New York City’s City Hall was built with lottery proceeds.

While it is not clear why governments began promoting and conducting lotteries, the practice likely grew out of exigency; early America was short on tax revenue and long on need for infrastructure projects, Cohen notes. Lotteries were seen as a more ethical alternative to taxes, and they raised funds for public goods without burdening citizens with a direct financial obligation.

However, the chances of winning a lottery jackpot remain extremely low. Many critics argue that state lotteries prey on poor people, luring them into an exchange that is mathematically stacked against them. This is especially true of instant scratch-off games, which studies show tend to attract more lower-income Americans and are marketed as a fast way to wealth. This regressive effect can have negative repercussions for marginalized communities, including those who live in neighborhoods disproportionately represented by Black and brown people.