Lottery is a form of gambling in which people buy tickets for a prize, typically money. Lottery winners are determined by drawing numbers, with the winners receiving a portion of the total prize pool. Lottery games have a long history, and are widely used in many countries, including the United States. Lottery prizes have been awarded for everything from town fortifications to livestock and even slaves.

Making decisions and determining fates by the casting of lots has a lengthy record in human history, with several instances in the Bible. But the modern lottery is a relatively recent development, with its first recorded public version being held in the Low Countries in the 15th century for municipal repairs and to help the poor.

State governments use lottery revenues to fund a variety of public programs and projects. These include education, infrastructure, and other social initiatives. Often, they are not as transparent as other tax revenue streams, which may expose consumers to implicit taxes without them being aware of them. In addition, the fact that lottery revenues are driven by promoting gambling means that they may run at cross-purposes with a government’s broader policy goals.

Lottery revenues typically expand rapidly after the initial launch of a game, but over time they tend to level off or decline. To keep sales strong, the industry has to introduce new games and increase promotional efforts. This approach raises questions about whether governments should be in the business of promoting gambling, particularly when it leads to problems for lower-income people and compulsive gamblers.