A lottery is an arrangement in which a prize (or prizes) are allocated by chance to people who purchase tickets. Prizes are usually money, but may also be other goods or services, such as housing units in a subsidized development or kindergarten placements at a local school. The word lotteries derives from the Middle Dutch phrase lotterij, meaning ‘drawing of lots’. The first European lotteries appeared in the cities of Burgundy and Flanders in the 15th century, with towns attempting to raise money for defenses or charitable purposes.

Today, state-sponsored lotteries operate around the world and are a common means of raising money for public and private projects. They have a wide and continuing popular appeal, with in most states more than 60% of adults report playing at least once a year. They typically develop extensive specific constituencies such as convenience store operators, whose revenues are used for marketing; suppliers of prizes, who often make substantial donations to state political campaigns; and teachers (in states in which lottery proceeds are earmarked for education), among others.

However, critics charge that the lottery encourages addictive gambling behavior, has a major regressive impact on poorer people, and creates other problems of public policy. They argue that the lottery’s popularity and success are driven by a fundamental conflict between its desire to increase revenue and its duty to promote the public welfare. The evolution of the lottery industry has accelerated this conflict by providing new games that are increasingly complex and appealing to more players.