A lottery is a game of chance in which participants may purchase tickets for a random drawing of prizes, such as cash or goods. Lottery proceeds are often used for public purposes. For example, in the United States, a lottery is commonly used to fund education. Some states also use lottery proceeds to finance prisons and other public works projects. In addition, many people participate in the lottery for entertainment value. The term “lottery” likely derives from the Dutch noun lot, meaning fate or fortune. The first state-sponsored lotteries to offer tickets with prizes in the form of money were recorded in the Low Countries in the 15th century.

Many states establish a lottery monopoly for itself and a state agency or public corporation to run it (instead of licensing a private firm in return for a percentage of profits). The lotteries typically begin operations with a small number of relatively simple games, but as pressure mounts for additional revenue, they expand their offerings and marketing efforts. This expansion is a major driver of the growth of lotteries, and it has led to many of the same criticisms, including allegations that they promote gambling problems and have a regressive impact on poorer groups.

Lotteries are a big business, and they can generate substantial revenues, especially if the prize is large enough to attract attention. But they are a form of gambling and, as such, raise questions about the appropriate role for government. Many states, notably in the United States, allow lotteries to advertise their games using billboards along highways. This advertising has raised concerns that the lottery is promoting irrational gambling behavior and a false sense of hope to people in an economic downturn.