Lottery is the practice of distributing property, or sometimes goods or services, by drawing lots. The lottery is a form of gambling that is legalized and regulated by the state. The practice dates back to ancient times. Moses was instructed to use a lottery to divide land among the Israelites, and Roman emperors used it as an entertainment at Saturnalian feasts. In the 17th century, it became common in Europe to organize lotteries to collect money for a wide variety of public usages. The oldest running lottery is the Dutch state-owned Staatsloterij, established in 1726.
The main criticisms leveled at lotteries are that they promote addictive gambling behavior and impose a large regressive tax on poorer citizens, while also diverting government resources from other more pressing public needs. State officials face a constant conflict between the desire to increase revenues and the need to protect the general welfare.
Regardless of the arguments for and against state lotteries, their introduction follows similar patterns: states create a monopoly for themselves; they establish a state agency or public corporation to run the lottery (rather than licensing private firms in return for a share of profits); they begin operations with a modest number of relatively simple games; and, due to constant pressures to generate revenue, progressively expand the scope and complexity of their offerings.
Generally, lottery revenues rise dramatically after an initial period of decline, but they eventually level off and even fall. This is due to the fact that many people grow bored with the same old games, and the introduction of new games is a necessary step to maintain or increase revenues.