A game in which tokens or tickets are distributed to members of the public for a chance to win some prize. The winning tokens or tickets are usually chosen by random drawing. Lotteries have wide appeal as a method of raising money and for giving away prizes because they require only voluntary participation and do not depend on taxation or other forms of coercion. Private lotteries have also been used as means of raising funds for charitable, religious, or educational purposes. In the United States, state governments enact laws authorizing and regulating lotteries. They also delegate to a lottery division the responsibility of selecting and licensing retailers, training them in the use of lottery terminals, selling and redeeming lottery tickets, promoting the games, paying high-tier prizes, and making sure that all participants comply with the rules.

The earliest recorded lotteries in which prizes were offered in the form of cash began in the Low Countries in the 15th century. In the United States, the first lotteries were private and involved a variety of games, including keno, bingo, and raffles. Since the 1970s, the state-run lotteries have grown in popularity.

When a state adopts a lottery, its supporters often argue that the proceeds will help the government in a way that would not be possible with other sources of revenue. Studies have shown that this argument is effective in gaining and sustaining broad public support for lotteries. However, such enthusiasm does not always translate into actual improvements in the state’s fiscal health. In the short term, lottery revenues rise dramatically after they are introduced but eventually level off or even begin to decline. These fluctuations are driven by state officials’ efforts to keep up with and compete with innovations in the industry.