As the number of state lotteries has increased, debate about them has shifted away from whether they should exist at all to specific features of their operations. Criticisms include the problem of compulsive gambling; alleged regressive impacts on lower-income groups; and problems of public policy, such as the tendency for lottery proceeds to be diverted from other important needs. These criticisms are both reactions to, and drivers of, the continuing evolution of the lottery industry.

The first recorded lotteries were conducted during the Roman Empire, when tickets were distributed as gifts at dinner parties and prizes often consisted of items of unequal value. Eventually, the practice became more formalized, and by the middle of the century, states began to use lotteries to raise money for a variety of purposes.

Once a lottery is established, it tends to operate like a monopoly operated by a government agency or public corporation (as opposed to a private company that licenses its games). A typical state begins with a modest number of relatively simple games and, because of continuous pressure for additional revenues, progressively expands its operations.

The result is that a growing percentage of state budgets come from gambling, and many voters are increasingly dependent on those profits. This dependency creates a conflict between the goals of the state government and those of its taxpayers, which can only be resolved by the state’s executive or legislative branch. Moreover, the dependence on gambling revenue undermines the ability of state governments to manage the overall fiscal health of their own populations.