A competition based on chance, in which numbered tickets are sold and prizes are awarded according to the results of a drawing. Often used as a method of raising funds for a public purpose or charity. Also known as a state lottery or a public lottery.

The casting of lots for decisions and the distribution of property have a long history (see Old Testament; Roman emperors, for example, gave away slaves by lottery). But lotteries as commercial enterprises are only relatively recent, with the first recorded public lottery in the West taking place in the Low Countries in 1466 to raise funds for town fortifications and help the poor.

Since New Hampshire launched the modern era of state lotteries in 1964, many states have followed suit, and there are now 37 lotteries operating in the United States. In all, they are generally quite similar: a state establishes a legal monopoly on the production and sale of lottery products; designs an agency or public entity to run the lottery; creates an advertising campaign to promote the lotteries; and enacts legislation to earmark lottery revenues for certain purposes.

Lotteries are a popular form of gambling, and as such attract many players. But they also draw criticism for their alleged regressive effects on lower-income people and their promotion of risky spending behavior. In addition, the large sums of money that can be won – particularly for those who win the jackpot — require extensive tax payments. Consequently, some critics argue that state lotteries are at cross-purposes with the overall public interest.