The lottery is a form of gambling in which people can win a prize by selecting numbers. Lottery games are usually run by states and may involve a single prize or multiple prizes. In the United States, most state governments operate a lottery. The prizes vary in value and are based on the total amount of money collected from ticket sales. Typically, the promoter of the lottery takes a share of the total pool of money, which is distributed to the winners. The rest of the money is used for promotion and taxes.

The practice of using lotteries to allocate property and other assets dates back to ancient times. The Bible has several instances of Moses distributing land by lot, and the Roman emperors frequently gave away slaves and other goods through lottery-like events at Saturnalian feasts. Lotteries have also been used to finance many private and public ventures, including roads, canals, universities, libraries, and churches. In colonial America, lotteries were an important source of funds for the early development of the colonies.

While the lottery has become a popular source of revenue for many state and local governments, it is still a controversial form of gambling. Many critics have focused on the alleged problem of compulsive gambling and the regressive impact of the lottery on low-income households, while others have highlighted problems in how the lottery is administered and promoted.

Those in favor of state lotteries argue that the proceeds from ticket purchases provide a valuable public service without imposing especially onerous tax increases on middle- and working-class citizens. In the immediate post-World War II period, this argument was particularly effective, as state governments were able to expand their array of services without having to increase taxes significantly. As the economy changed in the 1960s, however, this arrangement began to collapse. Lottery revenues were no longer able to sustain the increased demand for government services.

Lottery critics have also argued that the popularity of the lottery is tied to the perceived need for government assistance during economic stress. This argument has a certain appeal, particularly in an era where many people believe that state government is corrupt and out of control. However, studies have shown that the objective fiscal circumstances of a state do not appear to have much impact on public approval for the lottery.

Another issue with state lotteries is that revenues tend to spike dramatically after the lottery is introduced, but then level off or even decline. This has led to a constant stream of new games being introduced in order to maintain and increase revenues. The resulting competition for public approval has often shifted the focus of debate and criticism from the desirability of a lottery to its particular features.