Lottery is a game of chance in which numbers are drawn for prizes. The casting of lots for decisions and fates has a long history in human culture, including several instances mentioned in the Bible; however, the use of lottery-like games to distribute money and property is much more recent, originating in Europe in the 16th century. In colonial-era America, lottery games played an important role in funding the early settlement of the United States, and were used by George Washington to support the Revolutionary War and Thomas Jefferson for various public projects.

Lotteries are also the source of many debates, criticisms, and social problems. Despite the fact that these games are widely viewed as having a detrimental effect on society, it is difficult to abolish state-run lotteries due to the wide range of benefits they provide. These include raising a large sum of money for public works, which is often used to supplement budget shortfalls; increasing public participation in the economy by enabling people to buy lottery tickets; and generating significant profits that are then given to charity.

The problem with judging the merits of a lottery system is that it is impossible to know what is happening inside the heads of players. Some critics argue that lottery advertising is deceptive, frequently presenting odds of winning as much lower than they actually are; inflating the value of the money won (lotto jackpot prizes are usually paid in equal annual installments over 20 years, with inflation and taxes dramatically eroding the current value); and generally manipulating the message about the potential to become rich quickly.

Moreover, when state governments make the decision to establish a lottery, they often do so without a comprehensive policy or clear plan for the operation of the industry. The establishment of a lottery is often an incremental process, with authority and control fragmented between the legislative and executive branches, and between different departments within each branch. The result is that the development of a lottery is often driven by specific interest groups, and the overall public welfare is taken into consideration only intermittently.

In terms of specific interests, the lottery appeals to convenience store owners who serve as a major source of advertising and distribution for the games; suppliers to the lotteries, who give heavy campaign contributions to state politicians; teachers in states where lottery revenues are earmarked for education; and state legislators, who are accustomed to the influx of cash. In addition, the regressive impact of lottery play is widely acknowledged, with lower-income individuals spending a larger percentage of their income on tickets than higher-income groups. This is a common criticism of all forms of gambling, and one that can be applied to all types of lottery games. However, the regressive impact of lottery playing is less pronounced than that of other forms of gambling, such as slot machines. This is due to the fact that lottery tickets are generally purchased at lower price points than other games.