A lottery is a form of gambling that involves picking the correct numbers in order to win money or goods. It is a common way for governments to raise money and has been used throughout history, including in colonial-era America for funding public works projects such as streets and wharves, and building colleges like Harvard and Yale. Prizes can be a fixed amount of cash or goods, or they can be a percentage of receipts. The latter is the most common, but also exposes the organizer to risk if insufficient ticket sales are sold.

In the US, lotteries are typically run by state governments. They may offer a wide range of games, from instant-win scratch-off tickets to daily pick games. People can choose their own numbers or use a “quick pick” option to have the machine select a random set of numbers for them. Some states have multiple prize levels, while others offer a single grand prize.

The popularity of a lottery often depends on the perception that its proceeds are benefiting a particular public good, such as education. As a result, lottery revenues are more likely to increase when government budgets are tight. This has led to the ironic situation in which many state governments have become dependent on a form of gambling that they cannot control or manage. The ability of state officials to do so is hampered by a structure in which power and authority are fragmented between and within the executive and legislative branches, with the result that general policy goals are rarely considered.