A lottery is a game of chance in which people pay a small amount of money to have the opportunity to win a larger sum of money. The winners are determined by a random process, such as drawing lots. Lotteries are often used to raise funds for public goods, such as new roads or hospitals, and may be organized by state governments, private companies, or nonprofit organizations. They are also popular in sports and, less formally, in other activities that have a random component, such as selecting participants for subsidized housing units or kindergarten placements.

In the United States, most states have a lottery. Many state officials promote the games as a way to benefit children. But a careful look at how much money is raised by the games, and at what cost to the state, shows that this message is misleading.

The practice of distributing property or other valuables by lottery is ancient. It appears in the Old Testament, where Moses is instructed to divide land among the Israelites by lottery, and in Roman legends, where emperors gave away slaves and property at Saturnalian feasts. The first recorded European lotteries offering tickets for sale with prizes in the form of cash or goods were held in the Low Countries in the 15th century. The town records of Ghent, Bruges, and other cities show that these lotteries were designed to fund fortifications and town improvements.

The popularity of lotteries in the United States has grown rapidly. In 2021, Americans spent more than $100 billion on the games, making them the most popular form of gambling in the country. Yet the benefits of the games are not well understood, and they should be considered carefully before they are introduced in other parts of the world.