The lottery is a game of chance in which numbers are drawn for a prize. A player may choose to purchase one or more tickets, and the winnings are determined by drawing lots. Lottery games are run by private companies and governments, with the latter typically promoting them using advertising that emphasizes the large prizes available. Such advertising can have serious social consequences, promoting gambling to poor and problem gamblers. Moreover, the promotional effort has to be sustained in order to generate sufficient revenues.

In the US, lotteries are popular in almost every state. They raise billions of dollars per year. However, the prize money is often dwarfed by the hefty taxes that must be paid on the winnings. As a result, many people end up in debt after winning the lottery and lose much of their initial investment.

It is not clear whether state officials take into account the potential negative effects of running a lottery when making policy decisions. State officials may also be concerned about the potential for lotteries to divert tax revenues from other important public purposes. In any event, the lottery’s evolution is often at cross-purposes with the state’s overall fiscal condition.

The modern era of lotteries began with New Hampshire’s establishment of a state lottery in 1964. Since then, most states have followed the same model: they create a state monopoly to run a lottery; start with a modest number of relatively simple games; and expand, especially through advertising, to lure players with lucrative offers like super-sized jackpots and keno.