A lottery is a game in which participants pay a small amount of money for the chance to win a large sum of money or other goods. The winning numbers are selected randomly, either through a physical system that spins out balls with numbered markings or by machines that randomly select entries. The odds of winning are typically high. Although the casting of lots to determine fates has a long history, the modern lottery is a relatively recent development. It has become a major source of revenue for state governments. While a lottery is not without controversy, critics argue that it promotes gambling, may have negative consequences for lower-income individuals and does not necessarily result in the most efficient allocation of resources.

Most state lotteries are essentially business enterprises. Their profits depend upon generating sufficient revenues to cover their operating expenses and to pay out prizes. Thus, their advertising focuses on encouraging target groups to spend their money on the games. The large jackpots that attract media attention are one of the primary factors driving lottery revenues. However, they also have the effect of increasing public expectations and eroding the actual value of the prize money.

State lottery officials operate at cross-purposes with the larger public interest. Their authority is largely fragmented, and they must compete with other businesses for convenience store customers; suppliers (who give heavy contributions to state political campaigns); teachers, who are rewarded with lottery funds earmarked for education; and state legislators, who quickly get accustomed to the extra cash.