The lottery is a form of gambling in which numbers are drawn to win a prize. State governments sponsor lotteries to raise money for public projects and services, and the games are popular with people of all ages and income levels. However, the game is subject to intense criticism from those who contend that it is addictive and unfairly benefits richer people at the expense of lower-income families.

The first public lotteries to award cash prizes in exchange for tickets were held in the Low Countries in the 15th century to finance town fortifications and to aid the poor. The lottery subsequently played an important role in financing the American Revolution and, later, public works such as canals, roads, churches, colleges, and bridges.

States enact laws to regulate their lotteries, and most delegate the operation of the lottery to a separate division of state government or an independent public corporation. The division selects and licenses retailers, trains them to operate lottery terminals, and sells tickets. It also collects and redeems winning tickets, pays high-tier prizes to players, and ensures that both retailers and the public are following lottery law and rules.

In an anti-tax era, many state governments are heavily dependent on lottery revenues and face constant pressure to increase them. The lottery is also criticized for its ability to divert attention and resources from other public policy priorities, such as education, crime, and the environment. Studies have shown that lower-income individuals participate in state lotteries at a greater rate than their proportion of the population, and that retailers profit from a disproportionate share of lottery sales.