Lottery is a form of gambling where participants buy tickets for a chance to win a large sum of money, often in millions of dollars. The winning numbers are drawn through a random process. Many governments run state-wide lotteries. Others license private firms in return for a share of the profits. In either case, the result is the same: a small percentage of ticket sales are paid out as prizes.

Although making decisions and determining fates by casting lots has a long history (including several instances in the Bible), it was not until the 15th century that lotteries began to distribute prizes of money. The first recorded public lotteries were held in the Low Countries for town fortifications and to help the poor.

State governments have promoted their lotteries by stressing the benefits they can bring to public goods, such as education. The argument is effective, especially when states are facing budgetary stresses, but it has proved remarkably successful regardless of the objective fiscal conditions of a state.

One of the key reasons for this success is that people covet money and the things it can buy. As a result, when the lottery is advertised on billboards and television commercials, it appeals to this basic human impulse. In addition, lotteries are run as businesses with a focus on maximizing revenues, and their promotional activities necessarily promote gambling. This raises important questions about whether state government should be in the business of encouraging problem gambling and promoting wealth accumulation, particularly at cross-purposes with the needs of the poor.