Lottery is a type of gambling in which tickets are sold for chances to win prizes determined by a random drawing. Prizes can range from small items to large sums of money. The game is regulated by state authorities to ensure fairness and legality. The word lottery is believed to be derived from the Dutch noun “lot” meaning fate, although it may also have been influenced by Middle French “loterie,” a reference to the process of drawing lots. The first public lotteries in Europe were held in the Low Countries in the 15th century, with records from cities such as Ghent, Utrecht, and Bruges. Lottery games grew rapidly in popularity during the 17th century, and were promoted by the kings of France and England for public charity, town improvements, and war relief.

The lottery has become a major source of tax revenue in many states, although it remains controversial for its role as a form of gambling. Lottery critics argue that the money raised by state lotteries does not improve education, health care, or welfare services. In addition, lotteries are criticized for contributing to the problems of compulsive gamblers and for their regressive impact on lower-income neighborhoods. Proponents argue that the lottery is a viable alternative to raising taxes and cutting services.

Since the mid-1970s, when innovations transformed the lottery industry, the games have changed dramatically. Instead of selling tickets for a single drawing at some future date, as in traditional lotteries, newer state games allow players to buy multiple entries and participate in drawing after drawing until they have won the grand prize. These games are generally cheaper and offer higher odds of winning than traditional lotteries.

Despite the many differences between state lotteries, most follow a similar pattern: the state legislates a monopoly for itself; establishes a state agency or public corporation to run the lottery (as opposed to licensing private promoters in return for a portion of profits); begins operations with a modest number of relatively simple games; and, due to constant pressures for additional revenues, progressively expands the scope of the game.

State lotteries have a powerful ally in the convenience-store lobby, which typically receives substantial commissions from the sale of state lottery tickets. In addition, lottery promoters have built extensive specific constituencies: suppliers to the industry (who often contribute heavily to state political campaigns); teachers, in states where lottery funds are earmarked for school programs; and state legislators, who grow accustomed to the steady flow of painless tax revenue. Consequently, it is difficult for any state to abolish the lottery without the support of a wide swath of the population.