A lottery is a form of gambling in which numbers are drawn to determine winners. The prizes are often money, goods, or services. The lottery has a long history and is popular in many countries. It is also a source of tax revenue. Some governments have outlawed it, but others endorse it and regulate it. In the United States, all lotteries are operated by state governments, which grant themselves a monopoly on the right to sell tickets. In some cases, state governments outsource the operation of their lotteries.

The drawing of lots to determine ownership or other rights has a long record in human history (there are several instances in the Bible), but the first public lotteries offering prize money were held in the Low Countries during the 15th century to raise funds for town walls and fortifications, as well as to help the poor. The first recorded public lottery in the United States was created by James I of England to fund the settlement of Jamestown, Virginia, in 1612.

Lotteries attract a wide variety of players. Research has shown that lower-income people play at a much higher percentage of their disposable income than do those from the highest socioeconomic classes. It has also been suggested that the poor tend to buy more tickets and win smaller prizes than do their wealthier counterparts, although the latter may not be playing as frequently. In addition, there is evidence that a substantial portion of the proceeds from lotteries goes to convenience stores and other retailers, lottery suppliers, teachers in those states where lottery revenues are earmarked for education, and state legislators (who have become accustomed to accepting large campaign contributions from the operators of lotteries). These groups have their own interest in continuing to expand the lottery business.