The lottery is a popular form of gambling in which participants pay a small sum to be awarded larger prizes if their numbers match those randomly drawn. The money raised by the lottery is intended to reward players for their participation, cover operating costs, and provide a profit to the promoter. State lotteries have become a major source of state revenues. Since New Hampshire first introduced the modern era of the lottery in 1964, most states have now adopted it and run their own games.

Critics charge that state lotteries encourage gambling addiction and promote it to vulnerable populations, including the poor, racial minorities, and the elderly. Moreover, they are often promoted as a way for the public to “buy into” state government without paying any taxes. State advertising focuses heavily on touting the benefits of state-run lotteries, which are typically characterized by high jackpot prizes, guaranteed annual payments (often over 20 years), and a tax deferral on winnings.

The concept of making decisions or determining fates by the casting of lots has a long history in human history, with many instances recorded in the Bible. The earliest lotteries offering prize money in the form of cash are found in the Low Countries in the 15th century, when towns sought to raise money for town fortifications and aid the poor. The name “lottery” comes from the Middle Dutch word lotterij, meaning the drawing of lots. The term is also likely a calque on Middle French loterie, which means “the action of drawing lots.”