Lottery is a game in which people pay for a chance to win a prize, often money. Typically, players purchase tickets and choose numbers or have machines select them for them. If enough of their numbers match those drawn by a machine, they win the prize. Lotteries also raise funds for public services such as education, and they are popular in many countries around the world.

Several issues have plagued lottery operations in the United States and elsewhere, including the problems of compulsive gambling, regressive distribution, and other public policy concerns. These are in addition to the more general economic and social problems posed by gambling in general.

While the casting of lots for decisions and determining fates has a long record in human history, using it to secure material gain is of more recent origin. The first recorded public lotteries in the modern sense of the term were held in the Low Countries in the 15th century, raising money for municipal repairs and to help the poor.

The principal argument used to promote state lotteries is that they are a source of “painless” revenue: gamblers voluntarily spend their own money for the benefit of the community, without imposing taxes on anyone else. This appeal is especially potent in times of economic stress, when voters fear tax increases and politicians see lotteries as a way to avoid cuts in public spending.

But, even in good economic conditions, lotteries are not a panacea for state finances. Their popularity depends in large part on the degree to which they are seen as a “public good” and the amount of publicity given them. Furthermore, lottery revenues expand rapidly upon introduction but then level off and eventually decline, necessitating the constant introduction of new games to maintain or increase revenue.