A lottery is a type of gambling in which people bet on a number or a series of numbers being chosen as the winner. These games usually offer large cash prizes and are often organized so that a percentage of the profits is donated to good causes.
Definition:
A game where players select a group of numbers from a large set and are awarded prizes based on how many match a second set chosen by a random drawing. A game with a higher payout ratio is called a “Pick 5” or “Pick 4”.
Several states offer scratch games featuring licensed brand names such as Harley-Davidson motorcycles as prizes. These products provide exposure for the lottery and generate additional revenue for the state.
In some cases, lottery officials seek joint merchandising deals in which companies provide prizes for the lottery’s games. Among other things, these arrangements help lottery officials reduce advertising costs and increase their profits.
Lottery retailers include convenience stores, service stations, and other retail outlets. In 2003, the National Association of State Public Lotteries estimated that about 186,000 retail outlets sold lottery tickets across the United States.
The majority of lottery tickets are purchased by adults. About 60% of Americans report that they play the lottery at least once a year.
Lottery participation varies by socio-economic group and other factors, with men, blacks, and Hispanics more likely to play than women; the young and elderly more likely to play than those in middle age ranges; and Catholics more likely to play than Protestants. Per capita spending on lottery tickets is also higher for African-Americans than for any other groups, but this may reflect the fact that these individuals are more likely to live in lower-income neighborhoods.