Lottery is a form of gambling where multiple people purchase tickets for a chance to win a prize. While many people play private lotteries for money or goods, governments also run state and national lottery games. The prize may be cash or other valuable items. Regardless, a lottery relies on luck and skill to determine winners. While critics complain that lottery games are not a good way to fund government projects, they do generate revenue. The controversy over the lottery focuses on how much it promotes gambling and whether this is an appropriate function for a government to take on.

Lotteries are a popular form of fundraising, and are often used to finance large public projects such as roads, canals, libraries, and schools. During the Revolutionary War, lotteries were used to raise money for the Colonial Army. In recent times, the popularity of lotteries has soared due to a combination of factors: growing economic inequality fueled by new materialism that asserts anyone can become wealthy with enough effort or luck; and strong anti-tax movements that led lawmakers to seek alternative ways of raising funds for public projects.

Although there are some differences between state lotteries, they all share common features: the government legitimises a monopoly; sets up a state agency or public corporation to run the lottery; begins with a limited number of relatively simple games; and then responds to increasing demands for additional revenues by expanding its operations with new games and more aggressive promotion, including advertising. The resulting proliferation of games and heightened promotional activity have raised concerns about the impact on problem gamblers and other social issues.