The lottery is a form of gambling where people purchase tickets for a chance to win a prize, typically money. The prize amounts are usually much higher than the amount of money invested in the ticket. Unlike other forms of gambling, the prize money is awarded by drawing numbers rather than competing in head-to-head wagers against one another. Lottery has been a popular pastime since at least the Low Countries in the 15th century, and it continues to be a major source of income for many states.

Lotteries are popular because they provide a large reward for a minimal investment, and they are easy to understand. They are also a common mechanism for financing public goods such as roads, bridges and highways. Many critics, however, argue that the lottery promotes addictive gambling behavior and is a disguised tax on lower-income individuals. In addition, the sudden wealth that lottery winners acquire can be difficult to manage and can lead to poor decisions or even exploitation.

Most state lotteries begin with a legislative monopoly for the operation, establish a state agency or public corporation to run it, and start with a small number of relatively simple games. They then progressively expand the number of games to maintain or increase revenues. The expansion process is often influenced by the state’s objective fiscal circumstances, but it also may be motivated by concerns about public debt or the potential for cuts to government programs.