A lottery is a game in which numbers are drawn at random and the winners get prizes, typically money. It is often a popular form of gambling, and some states even run state lotteries to raise revenue for public purposes.
The term lottery has its origins in the Middle Dutch word lot meaning “dice” or “fate”. It was used in towns in Flanders for many different purposes, including raising funds to build town fortifications and to help the poor. The first recorded lotteries with tickets to win cash prizes were held in the Low Countries in the 15th century, although it seems possible that private lotteries existed earlier.
Modern lotteries are generally state-sponsored and run by a government agency or public corporation (rather than a privately owned company); they offer a variety of games and rely on the sale of tickets to generate revenue. In addition to the financial lotteries, there are also lotteries for military conscription, commercial promotions in which property is given away by a random procedure, and the selection of jury members.
Though there are some concerns about compulsive gamblers and the regressive impact of lotteries on lower-income groups, lotteries have broad popular support. Across the country, the majority of adults report playing a lottery at least once a year. Lottery revenues are earmarked for public purposes in most states, and the industry has a strong constituency, ranging from convenience store operators to lottery suppliers (who make substantial contributions to state political campaigns) to teachers (in those states that use lotteries to fund education). The history of state lotteries suggests a dynamic that is familiar to economists: voters want their state governments to provide more services and politicians look to lotteries as an easy source of painless revenue.