Lottery is a gambling game in which players pay for tickets, which contain numbers, and are then drawn in a random manner to win prizes. The prize amount varies according to the number of tickets purchased and how many of the winning numbers match those selected. Typically, the bigger the prize amount, the more expensive the ticket. Lotteries are generally run by governments, although private companies may also promote them and charge commissions for bringing in new customers. This type of government-sponsored gambling is controversial because it has been shown to have negative consequences for people in need, problem gamblers, and others. Moreover, state lotteries operate at cross-purposes with public interest because they advertise heavily to promote gambling and encourage people to spend money they don’t have.

While the casting of lots to make decisions and determine fates has a long history, the modern lottery is a relatively recent invention. Its origins lie in attempts to raise funds for town fortifications and poor relief, as evidenced by early records from the Low Countries. The first recorded public lotteries distributed prize money in the form of cash were held in the 15th century, and they quickly became popular.

Today, states hold a wide range of lotteries. Most use a similar model: the legislature creates a monopoly by law; establishes a public agency or corporation to administer the operation; begins with a modest number of relatively simple games; and, driven by the need for additional revenue, progressively expands the scope and complexity of the lottery. In addition, state lotteries are heavily marketed to attract and retain customers. They use television and radio commercials, direct mail to households, and other forms of advertising.

Most states have public lotteries that primarily fund educational institutions. This practice is often controversial because it can lead to inequality and racial discrimination, especially for students from low-income families. But the fact remains that lotteries are one of the few types of state revenue that enjoy broad public approval. This support is not only based on the belief that proceeds will benefit the overall welfare of the state, but also because lotteries are seen as an alternative to tax increases and cuts in educational spending.