Lottery is a form of gambling in which people pay for the chance to win a prize based on random chance. Prizes may be money or goods. The game of lottery dates back centuries and is often associated with religious or esoteric rituals.

In modern times, state-run lotteries have exploded in popularity. Lottery revenues are used by many states to support education, veterans’ health programs, and other needs without increasing the amount of taxes imposed on their citizens. These benefits, combined with a public perception that the game is easy to play and can bring good luck, have helped lottery sales surge.

There are several important differences between a lottery and other types of gambling, such as games of skill or sports betting. The first difference is that winning the lottery depends on chance, while other forms of gambling depend on skill or knowledge. The second difference is that the odds of winning the lottery are much lower than those of other types of gambling.

The practice of distributing wealth or property by casting lots for it has a long and distinguished history, including numerous references in the Bible. It has been a common means of raising money for public works projects, such as the building of the Great Wall of China and the roads of Rome.

Lottery games are often the target of criticism, with allegations that they encourage compulsive gambling and have a regressive effect on the poor. But these concerns are misdirected. The evolution of state lotteries is a classic example of policy making by incremental steps, with the outcome being determined by factors over which legislators and other officials have only limited control.