Lottery is a form of gambling in which numbers are drawn to determine the winners of a prize. The casting of lots to make decisions and divvy up property has a long record in human history (including several instances in the Bible). More recently, people have used the lottery to win money or goods. The modern state lottery originated in New Hampshire in 1964 and was followed by other states, as well as by some federal lotteries. The lottery has broad public appeal and, once established, retains its popularity. Its growth and operations follow a fairly similar pattern in all states: the state creates a monopoly; establishes a state agency or public corporation to run the lottery (as opposed to licensing a private firm in return for a share of profits); begins with a modest number of relatively simple games; and, due to constant pressure for additional revenues, progressively expands its scope of activities and complexity, especially by adding new games.

The ubiquity of lottery games is partially explained by the fact that they are highly profitable for their promoters. They also provide an important source of revenue for many states, which use their proceeds to fund public programs or bolster state budgets. Lottery advocates argue that the proceeds can be devoted to a public good and thus help alleviate the need for higher taxes or cuts in other state expenditures. However, studies show that the objective fiscal condition of a state does not appear to have much influence on whether or when it adopts a lottery.