Lottery is a form of gambling in which numbers are drawn for the purpose of winning a prize. In addition to the prize money, the odds of winning vary based on how many tickets are sold and the price of the ticket.

The casting of lots to make decisions and determine fates has a long history (including several instances in the Bible). However, drawing numbers for material gain is relatively recent, with the first recorded lottery held in 1466 in Bruges, Belgium, to raise funds for municipal repairs. State governments embraced lotteries because they allowed them to expand their social safety nets without especially onerous taxes on middle-class and working class residents.

While the initial reaction to lotteries was largely positive, concerns have shifted over time. Criticisms focus on specific features of lotteries and their operations, including a regressive effect on lower-income households and problems with compulsive gamblers. These concerns have led to the evolution of a number of different forms of state lotteries.

In the current era, states have a clear interest in managing and expanding their lotteries to generate revenue for a variety of purposes. In fact, the majority of states rely on lotteries for at least a portion of their general fund revenues. However, the complexities of the modern lottery system are numerous and varied.