Lottery is a game in which participants pay a small amount of money to have the chance of winning large sums by matching numbers randomly drawn by machines. Prizes may be cash or goods. It has been a popular way for states to raise revenue. Many people enjoy playing the lottery, and more than half of all adults in the United States report having played at least once.

In the modern sense of the word, the first state lottery was started in New Hampshire in 1964. Since then, lotteries have become widespread, with about 60 percent of states having them. Some critics argue that they are unreliable sources of revenue, and that they tend to benefit a particular group of people over other groups, such as convenience stores and ticket suppliers (heavy contributions from lottery suppliers to state political campaigns are regularly reported). Others point to the fact that the games often involve gambling and have significant negative social consequences.

The drawing of lots to determine ownership or other rights is a practice that dates back to ancient times. It was also common in colonial-era America, where it helped to finance the founding of towns and projects, such as the construction of roads and wharves, as well as colleges and public works projects. It also financed wars and the construction of churches. It even helped fund a battery of guns for the defense of Philadelphia and the rebuilding of Faneuil Hall in Boston.

Some of the early lotteries were passive drawing games, in which a person bought a ticket preprinted with a number and then waited for weeks to learn if he or she had won. These early games were not very popular, and they were eventually replaced by games in which participants selected their own numbers or by machine-generated numbers. These more active games offered more prizes, and they were more popular with the public.

During the early years of lottery growth, most states used the money to supplement their existing budgets or provide for additional services. Some states, such as Minnesota and Wisconsin, used the money to help the poor. Others, such as California and Oregon, used it to help the middle class and working classes avoid a rise in taxes.

Lottery supporters have argued that the games are a source of painless revenue, in which voters voluntarily spend their money to support government spending. But some observers say that lotteries may actually be contributing to a fiscal crisis by reducing the tax base, thus raising other types of taxes or making it harder for government to cut back on programs. In addition, the growth of lotteries is creating new gambling addictions. And the proliferation of electronic gaming devices has raised concerns about societal harms such as problem gambling. Moreover, many people are now betting on sports events, video games, and other activities that are not subject to the same regulatory standards as the traditional lotteries. This has increased the risk of exposure to gambling-related disorders, especially for younger people.