Lottery is a competition based on chance in which numbers are drawn at random to determine winners, often for a prize of money. It is most commonly used as a way to raise public funds. Lotteries have a long history, and they were the main source of capital for the first English colonies. They helped finance roads, wharves, canals, churches, colleges and even universities. In colonial era America, they raised money to build towns and pay for the army. George Washington sponsored a lottery in 1768 to fund a road across the Blue Ridge Mountains.

State lotteries enjoy broad popular approval and are a main source of revenue for many states. They are not subject to the same constraints as general taxation, so politicians can count on them to raise money without arousing public concern about soaring state spending or painful cuts in public programs.

The popularity of lotteries is influenced by a number of factors. A key factor is the degree to which lottery proceeds are perceived as being devoted to a specific public good such as education. This argument is particularly effective in times of economic stress when the prospect of raising taxes or cutting public programs looms large in voters’ minds.

Another important factor is the extent to which lottery play differs by socio-economic group. For example, people in middle-income neighborhoods are far more likely to participate than those in low-income ones. The fact that lottery revenues also tend to decrease with age and educational attainment further reduces their appeal to the poor.