Lottery is a type of gambling in which numbers or symbols are drawn to determine a prize. The prize is usually money but may also be goods, services, or real estate. Lotteries are most often run by states and can be used to raise funds for a variety of public purposes. They are a form of indirect taxation, in which the participants pay for the chance to win a prize that is then paid out in cash.

The casting of lots for a prize has an ancient history and is also used for a number of non-gambling purposes, including military conscription, commercial promotions in which property is given away, and the selection of jury members. In modern times, state-sponsored lotteries are the most common type of lottery. They are typically conducted by a state agency or public corporation rather than private firms, and they are regulated to ensure that participants are treated fairly.

In the immediate post-World War II period, many of the states that introduced lotteries did so with the belief that they could supplement their social safety nets without onerous taxes on the middle class and working classes. It is not unreasonable to assume that the same belief is underlying the current revival of lotteries in many states.

In reality, state-sponsored lotteries are at cross-purposes with the larger public interest. They promote gambling, encourage compulsive gamblers, and may have a regressive effect on lower-income communities. They are often at odds with other state policies aimed at combatting problems such as drug abuse, crime, and welfare dependency.