Lottery is a form of gambling in which numbers are drawn to determine prizes. It is typically run by governments. The practice of making decisions and determining fates by lot has a long history (including several instances in the Bible), and the modern lottery dates to at least the 1740s, when it was used as a method for raising funds for public ventures, including roads, libraries, churches, canals, colleges, and even for military purposes during the French and Indian War.

Today, state-run lotteries are complex enterprises that raise large sums of money in a variety of ways. They operate as businesses with a singular focus on increasing revenues, and they constantly introduce new games to increase participation and keep revenue growth high. This trend has drawn criticism from critics who argue that state officials have created an addiction to revenue and that their actions may contribute to problems like compulsive gambling.

Despite these criticisms, state lotteries remain popular. Among other things, the lottery provides an easy and accessible way for people to increase their incomes. In addition, the lottery is a convenient source of tax revenue. As a result, most states are dependent on lottery revenue and face continuous pressures to increase its size and complexity. But a fundamental question remains: Is it appropriate for government at any level to profit from the promotion of gambling? And is it possible to manage a system that profits from gambling in a way that does not undermine the welfare of its constituents?