A lottery is a scheme for the distribution of prizes by chance. It usually involves selling numbered tickets, with one or more of the tickets bearing particular numbers drawing the prizes, while the other tickets are blanks. The word is probably from Middle Dutch loterie, and could be a calque on Middle French loterie “action of drawing lots” (see also draw (definition 1a).

In the United States, state-run lotteries raise money for various purposes through the sale of numbered tickets, with the top prize often being a substantial sum of cash. While critics of lotteries point to the problems they can cause for poor people and problem gamblers, state governments continue to promote these gambling operations as an important source of revenue.

The popularity of lotteries varies, depending on a variety of factors, including the availability of other sources of income, public perception of their legitimacy and the degree to which they are advertised. In general, however, lottery participation is very widespread. Approximately 60% of adult Americans report playing a lottery at least once a year, and a significant percentage play regularly. The vast majority of players are white, high-school educated men in the middle of the economic spectrum.

During the late 1800s, lottery organizers were forced to change their methods of operation in order to stay competitive with other gambling establishments. They began to sell tickets in fractions, such as tenths, each of which cost slightly more than the price of a whole ticket. This system enabled ticket sales to be increased while ensuring that the winnings would not exceed the total amount paid for the tickets.

Another factor that worked against the lottery during this period was the rise in religious and moral sensibilities. It was feared that the lottery was becoming corrupt, with enslaved persons winning large amounts of money and then using it to buy their freedom.

Lottery revenues typically expand dramatically soon after their introduction, and then level off or even decline. To counter this, new games are introduced on a regular basis. Some of these are similar to the traditional raffles that existed before state lotteries were established, while others use technology to make playing a lottery more exciting.

Ultimately, lottery operators are in the business of maximizing profits, and advertising campaigns are designed to appeal to specific constituencies, such as convenience store owners; suppliers of lottery products (heavy contributions by these businesses to state political campaigns are frequently reported); teachers (in states where the proceeds are earmarked for education); and so on. Consequently, debate and criticism of the lottery tend to focus on these more specific features rather than the general desirability of such an enterprise. This evolution of the lottery industry has shifted discussion about its benefits and detriments from issues of social policy to more specific aspects of its operations, such as compulsive gambling and its alleged regressive impact on lower-income groups. This is an ongoing area of public policy debate.