ABSTRACT
The most common form of legalized gambling in the U.S.A. are state lotteries. Forty states and the District of Columbia currently operate lotteries. From their humble beginnings in New Hampshire in 1964, lotteries have developed into a primary revenue source for a number of state governments, generating over $48 billion in sales during the fiscal year 2004. More importantly, after accounting for prize distribution and administrative expenses, lotteries generated over $15 billion in profits.[1] State lotteries have assumed a prominent, albeit often misunderstood, role within public finance and American culture.
