A competition based on chance, in which numbered tickets are sold and prizes are given to the holders of numbers drawn at random; also: a system for raising money. The casting of lots for decisions or fates has a long record in human history, and lotteries are now commonplace.

While the lottery is a popular pastime, critics argue that it disproportionately targets low-income individuals and can exaggerate existing social inequalities by encouraging people to spend money on tickets despite their poor odds of winning. In addition, the sudden wealth resulting from winning a lottery can be difficult to manage and often leads to poor financial decisions or even fraud.

The first modern state lottery was introduced in New Hampshire in 1964, and it proved so successful that other states soon adopted it, primarily as a source of revenue to pay for education and other public services without the need for additional taxes. State-run lotteries have a number of advantages over private games, including better odds, lower costs and increased transparency. In general, state lotteries follow a similar pattern: They begin with a small set of relatively simple games; revenues increase rapidly at first, then level off and start to decline; finally, in response to pressure for increased revenue, they introduce more complex games. In the United States, there are currently 37 states and the District of Columbia that offer a state-run lottery. A number of private games are available nationwide, as well.