The lottery is a gambling scheme in which tickets bearing numbers are drawn at random to determine winners. The prize money is usually cash, although goods, services, or even houses may be awarded. Although casting lots for decisions and determining fates by chance has a long history (a number of instances appear in the Bible), the modern lottery is of relatively recent origin. The first recorded lotteries were held in the 15th century, with the earliest involving prizes of money.
The public is generally supportive of lotteries. They are seen as providing funds for a specific public good, such as education.1 Moreover, they help state governments avoid potentially politically unpopular tax increases or program cuts.2
These positive features of the lottery are well documented in studies and media coverage. However, it is less well understood why some people buy tickets. Lottery purchases cannot be explained by decision models based on expected value maximization, since the ticket costs more than the potential prize. Yet, more general models incorporating risk-seeking behavior can account for lottery purchasing.
Buying a lottery ticket may appeal to a human desire to take risks, particularly when the potential reward is so large. The specter of instant wealth can also be alluring in an age of inequality and limited social mobility. In addition, many people view buying a ticket as an inexpensive way to increase their chances of winning. This rationale has led to a proliferation of lottery advertisements, which are often deceptive and exaggerate the odds of winning.