How to Increase Lottery Revenue

Lotteries are games where multiple people buy tickets for a small price in order to have a chance of winning a large sum of money. They are often run by state governments.


In the United States, lotteries were first created in 1612 to raise funds for Jamestown, Virginia (the first permanent English settlement in America). They were later used by public and private organizations to finance towns, wars, colleges, and public works projects.

Historically, revenues from the lottery typically expand dramatically after its introduction, then level off or even begin to decline. As this occurs, the lottery must continuously add new games in order to maintain or increase revenues.

A key factor in the success of lottery revenue is the popularity of the game among its target audience. The general public is strongly influenced by the prospect of winning a prize, and lottery advertising has been found to be a very effective means of increasing public interest in the lottery.

In order to attract the public, lottery officials must present the benefits of the lottery in a clear and positive light. They must make the case that the proceeds of the lottery will help a specific public good, such as education. They also must convince the public that the lottery is not harmful to the poor or to problem gamblers. In addition, lotteries must be able to generate sufficient revenues to cover the costs of running and administering them.