Lottery is a game in which numbers are drawn at random to determine winners of prizes. In some cases, the prizes are distributed according to a predetermined formula, while in others, the prize money is determined by a combination of ticket sales and other sources such as taxes or advertising revenues. The casting of lots to make decisions or to determine fates has a long history in human culture, but the use of lotteries for material gain is less ancient. State-sponsored lotteries were introduced in Europe in the 15th century, and the term lottery may be a calque of Middle Dutch loterie.

In the United States, most states have lotteries, which are regulated by law. Most lotteries have several games, including instant-win scratch-off tickets and daily games that require players to pick numbers. Prizes can range from a few thousand dollars to millions of dollars, and the winning amount is usually proportionate to the number of tickets sold. In many states, a portion of the proceeds from lotteries goes to education.

One argument in favor of state lotteries is that they generate revenues that can be used for a broad public good, such as education, without raising taxes. This appeal is especially powerful during economic stress, when it may appear that state governments are cutting budgets and imposing new fees on residents. However, studies show that the popularity of lotteries is not correlated with the objective fiscal health of state government.