A lottery is a game in which people purchase numbered tickets, and the winners are determined by chance. It is a form of gambling, and it has been used for centuries. Its use as a means of raising public funds for the benefit of the people has been controversial. Some people have argued that lotteries are unfair, while others have supported them for the economic benefits they can bring to society.

The first recorded lotteries were held in the Low Countries in the 15th century to raise money for town fortifications and to help the poor. These were not official government lotteries, but rather local private promotions run by city officials and licensed promoters. Modern lotteries are usually state-sponsored, and a large prize is offered along with many smaller prizes. Typically, the prize money is the amount remaining after expenses such as the profits for the promoter and the cost of promotion are deducted from ticket sales.

During the early years of the American Revolution, colonial governments and the Continental Congress relied heavily on lotteries to raise funds for many projects. Alexander Hamilton, the chief advocate for these lotteries, argued that most people would be willing to risk a small sum for a substantial gain and that it was a “fair and equitable” way to raise funds.

In the United States, lottery proceeds are typically collected by state governments and are distributed to various social and civic programs. In addition, many states also operate private lotteries, which are operated by independent corporations that are regulated and taxed like other businesses. Approximately 186,000 retailers sell lottery tickets in the United States, including convenience stores, gas stations, grocery stores, retail and nonprofit organizations (such as churches and fraternal groups), restaurants and bars, bowling alleys, and newsstands.