A lottery is a form of gambling in which participants can win prizes based on the drawing of numbers. State governments generally oversee lotteries and regulate them. Most states have a special lottery division to select and train retailers, operate ticketing terminals, promote the games, pay jackpot prizes, and oversee the operation of the game. Many people play the lottery, and some have become compulsive gamblers. State lotteries also raise money for public services, such as education. But critics have argued that lotteries promote gambling and can have negative social effects on low-income people. They have also criticized the way state lotteries use advertising to persuade the public to spend money on the games.

The first recorded lotteries to offer tickets with prizes in the form of cash were held in the Low Countries in the 15th century, for such purposes as building town fortifications and helping the poor. Lotteries became popular in the immediate postwar period, when states hoped to expand their array of social safety net programs without imposing too burdensome taxes on middle-class and working-class citizens. Nevertheless, studies show that the objective fiscal conditions of a state do not significantly influence its decision whether or when to adopt a lottery.