The term official lottery refers to a state-sponsored game that distributes prizes (typically money) to people who buy tickets. State lotteries are common in many countries and serve as a form of alternative taxation, bringing in revenues without the stigma or regressive nature associated with direct taxes. While lottery games are usually regarded as a form of gambling, some states use the profits to support public goods and services. Regardless of their motive, state lotteries generate considerable controversy and attract many opponents.
The first recorded public lotteries were held in the Low Countries during the 15th century to raise funds for town fortifications and help the poor. They became increasingly popular throughout Europe and the United States, where they were used to fund public projects such as building the British Museum and repairing bridges. Privately sponsored lotteries also grew in popularity and sometimes served as a substitute for taxation.
Despite the fact that the odds of winning are very slim, many people become hooked on the game and spend a large portion of their income on tickets. This type of player is known as a committed gambler, and his or her behavior may have serious consequences. Fortunately, there are ways to reduce the risk of becoming addicted to the lottery.
In modern times, most government-sponsored lotteries are run by provincial and territorial governments. In Canada, there are four nationwide lotteries administered by the Interprovincial Lottery Corporation: Atlantic Lottery Corporation (New Brunswick, Nova Scotia, Prince Edward Island), Loto-Quebec (Quebec), Ontario Lottery and Gaming Corporation (Ontario), and Western Canada Lottery Corporation (Manitoba, Saskatchewan, Alberta, Manitoba, Yukon, Northwest Territories, and Nunavut).
Two popular moral arguments against the lottery are that it is not truly voluntary and that it preys on the illusory hopes of the working class. The former charge contends that lottery proceeds are a hidden and involuntary tax, which violates the principle of equality before the law. The latter charge says that lotteries are regressive because they place a greater burden on the less wealthy than on the rich.
Although the lottery is a major source of state revenue, it has been accused of fostering corruption and unethical practices. This is particularly true of state lotteries that are operated by private promoters, such as the New York Lottery. In the late 1800s, lotteries fell out of favor with the public due to concerns about corruption and moral uneasiness, and the rising popularity of bond sales as a means of raising state revenues. Only Louisiana continued to hold a state-run lottery until it was discontinued in 1967.