A lottery is an arrangement for the distribution of prizes based on chance. Prizes may be money or goods, services, or a combination of both. Lotteries are most commonly government-sponsored games, but they can also be privately sponsored or conducted. In colonial America, many private and public ventures were financed by lotteries, including roads, libraries, colleges, churches, canals, and bridges. Benjamin Franklin even held a lottery to raise funds for cannons to defend Philadelphia against the British during the American Revolution.

When state governments introduced their own lotteries, they typically promoted them in terms of a way to finance education, health programs for veterans, and other social safety net needs without an increase in taxes on the general population. Lotteries have consistently won broad public approval, regardless of the actual fiscal condition of a state. This dynamic is one reason why so many states have failed to develop coherent gambling policies. Policy decisions are made piecemeal and incrementally, and there is little or no coordination among various branches of the state.

Nevertheless, it is important to understand the underlying dynamics of lottery play. Although the vast majority of state lottery players come from middle-income neighborhoods, some segments of the population are disproportionately less likely to participate. For example, men play more frequently than women, blacks and Hispanics play at lower rates, and younger people play less. Some of these trends are probably due to socio-economic factors, but there is also a significant degree of inertia.