A lottery is a system for distributing prizes (typically cash) by lot or chance. A lottery can be organized by state or private enterprise, and may be a form of gambling. It can also be used for charitable or other public purposes. Prizes can range from a single item to a percentage of total receipts. Often, the prize fund will be fixed at a certain amount of revenue generated by ticket sales. This arrangement can be controversial, because the prize is a risky investment for the organizers.

In the United States, state-sponsored lotteries have grown rapidly in popularity since 1964. Their emergence has been rapid and widespread, with nearly every state now offering them. The principal argument for lottery adoption has been its value as a source of “painless” revenue. Politicians and voters alike like the idea of generating additional government funds without having to increase taxes or cut spending.

The casting of lots for decisions and determining fates has a long history in human society, including multiple instances in the Bible. The earliest recorded public lotteries to offer tickets with prize money were held in the Low Countries in the 15th century to raise funds for town fortifications and the poor. Lotteries have been an important part of American life since colonial days, financing the building of roads, libraries, colleges, canals, and churches. In the 1760s, George Washington sponsored a lottery to build a road over a mountain pass in Virginia.