Lottery is a form of gambling, but unlike other forms of gambling, it is run by governments. In many countries, lottery commissions are quite sophisticated in their use of the psychology of addiction, employing everything from the look and feel of tickets to clever math to keep players coming back for more. They are not above borrowing strategies from tobacco companies or video game makers, either.
The casting of lots to determine fates or to award material rewards has a long history (Nero was a fan) but the modern state lottery is relatively recent, beginning in the nineteenth century. Its origin, argues the author of this article, was a combination of growing awareness of the vast amounts of money to be made and a need for state revenue that could not be easily gained by raising taxes or cutting programs.
Initially, a lottery is a simple affair, with the public purchasing tickets for a drawing at some future date, often weeks or even months away. Over time, however, innovations have transformed the industry. In the 1970s, for example, instant games were introduced. These offered smaller prizes but much faster turnover; their popularity quickly increased.
These innovations also tend to increase ticket sales, because the odds of winning a large prize can be lower, making the ticket more attractive. This is particularly true if the prize is divided into fractions, allowing each ticket to have a higher probability of winning than the total pool. In such cases, the disutility of a monetary loss can be outweighed by the entertainment value or other non-monetary benefits of playing the lottery.