Lottery is a game of chance in which numbered tickets are drawn at random to determine winners. The winner(s) may be entitled to a lump-sum prize or to receive it in an annuity distributed over several years. In some cases, a portion of the prize money is used for administrative costs, such as the cost of running the lottery. In other cases, the entire proceeds are redistributed to the winner(s). In some instances, a portion of the winnings is earmarked for a specific purpose, such as supporting public education.

The practice of determining fates and allocating property by drawing lots has a long history, with several examples appearing in the Bible (Moses was instructed to take a census of Israel and then divide its land by lot; Roman emperors used lotteries to give away goods and slaves). In the United States, modern government-run lotteries were first introduced during the colonial period, when Benjamin Franklin conducted one to raise funds for cannons to defend Philadelphia against the British.

Until the 1970s, state lotteries were relatively similar to traditional raffles, with people buying tickets for a drawing that would be held some time in the future. The introduction of instant games, such as scratch-off tickets, transformed the industry. These games generally have lower prize amounts and higher odds of winning.

As a result, they tend to attract less affluent consumers. While many lottery participants regard the games as a good use of public funds, others feel that their proceeds are better spent on other public needs, such as education or crime prevention. Studies show that the popularity of lotteries is not related to a state’s actual fiscal health, though they do gain in popularity during periods of economic stress.