The official lottery is the most common and well-known of a group of state-sponsored games that use numbers to award prizes. It is typically run once a week. Its prize fund is usually much larger than those of other lotteries, and the number of winners is far more numerous. The game has many variants, including instant lottery tickets (betting on the results of a drawing without purchasing a ticket), numbers games, and keno. Lottery revenue is often used to support public education systems.
State governments have long regarded lotteries as an attractive alternative to raising taxes, especially in the face of a late-twentieth century tax revolt that swept across the nation. Lotteries, supporters argue, allow states to depend on a captive audience of players to finance government operations instead of forcing everyone to pay mandatory income, property, or sales taxes.
But critics say that lotteries are hardly the boon their supporters claim. First, they argue, they are a form of “regressive” taxation—that is, they place disproportionately high burdens on poorer taxpayers than richer ones. They also accuse the lottery of preying on the illusory hopes of the poor and working classes, as evidenced by the fact that these people play the lottery most.
Lottery profits in New Zealand are allocated by an autonomous Crown entity, the Lottery Grants Board, to charities and community organizations. In addition to the Lotto, the country’s other national lotteries include Bullseye, Keno, and Instant Kiwi.