Lottery is a popular form of gambling, in which numbered tickets are sold for a chance to win a prize. Lotteries depend on chance and are run by states, companies, or private individuals. Prizes range from a small amount of money to a new automobile or home. Lottery is also a popular form of fundraising for schools, churches, and public-works projects. The practice of drawing lots to determine ownership or other rights is ancient, but the modern lottery emerged in the United States in the 1612 settlement of Jamestown, Virginia, at the order of King James I of England. Today, state-sponsored lotteries have become widely accepted and are used to raise money for everything from school construction to sports stadiums.

Since 1964, when the first state lottery was established in New Hampshire, 37 states have adopted them. In the early stages of their growth, lotteries gained wide acceptance as a way for state governments to expand services without increasing taxes on middle-class and working-class taxpayers.

Once a lottery is in place, debate and criticism shift from its desirability as an alternative to higher taxes to specific features of its operations, such as the promotion of gambling and the alleged regressive effect on low-income communities. These issues are exacerbated by the fact that lotteries are run as businesses whose main function is to maximize revenues, meaning that advertising campaigns necessarily focus on persuading targeted populations to spend their money. Moreover, critics point out that the earmarking of lottery revenues to particular programs (such as education) is misleading; these funds still go into the general fund, and the legislature can use them for whatever it wishes.