A lottery is a form of gambling in which participants pay a small amount of money (a ticket) for the chance to win a large sum of money. In the United States, state governments promote lotteries as a way to raise money for public projects without raising taxes. But a lottery is still a form of taxation, and winning the jackpot can be an expensive affair.

Nevertheless, many people play the lottery because of its entertainment value and the non-monetary benefits that they expect to receive. In these cases, the expected utility of a monetary loss can be outweighed by the combined utility of a monetary and non-monetary gain. The resulting positive expected value makes purchasing a lottery ticket a rational decision for the individual.

In the United States, 44 of the 50 states run a lottery. The six that don’t—Alabama, Alaska, Hawaii, Mississippi, Utah, and Nevada—have a variety of reasons for not running a lottery. But most of the rationales offered for not introducing a lottery have one thing in common: They are motivated by the desire to avoid raising taxes.

The history of lotteries in the United States reflects this pattern. The first state lottery was established in New Hampshire in 1964, and it was successful enough to entice other states to follow suit. By the end of the 1970s, 12 states had introduced lotteries. In the ensuing years, another 10 states have joined them. The resulting 37 state lotteries are an important source of revenue. They also support a wide range of educational programs, including scholarships and fellowships, as well as health care and infrastructure projects.