How the Lottery Industry Taps Into Human Psychology

Lottery is a form of gambling in which numbers are drawn at random for the prize. It is an ancient practice, attested to in the Roman Empire (Nero was a fan) and throughout the Bible, where it was used to determine everything from who got to keep Jesus’ garment after his Crucifixion to which slaves would get to work the next day. In the modern era, it became increasingly common for state governments to organize lotteries as a way to raise money for public works.

The most common lottery game involves purchasing a ticket that contains a selection of numbers, usually between one and 59. Some people choose their own numbers, while others have them picked for them at random. The odds of winning vary from game to game, but are generally fairly low. In addition to the jackpot, some lotteries offer smaller prizes for matching other randomly selected numbers.

Despite these odds, lotteries are enormously popular. The underlying reason is that people perceive the disutility of a monetary loss to be outweighed by the entertainment value or other non-monetary benefits of playing. As long as the resulting utility exceeds the cost of the ticket, people will buy tickets.

The lottery industry is savvy to this psychology, and it uses every trick in the book to keep people hooked. From the look of the advertisements to the math behind the numbers, state-run lotteries are designed to maximize their profits while keeping players coming back for more. This isn’t anything new—tobacco companies and video-game makers have employed similar strategies for years. But it is unusual to see state government take such full advantage of human psychology.