A lottery is a competition based on chance, in which numbered tickets are drawn at random to determine the winners. The casting of lots has a long history in human affairs, notably as a means of making decisions and determining fates (including several instances in the Bible), but lotteries for material gain are more recent. They are often used to distribute prize money or public goods. Examples include a drawing for units in a subsidized housing block or kindergarten placements.

Lottery games have broad public appeal, and they raise substantial amounts of revenue for state governments and charities. Nevertheless, their popularity is controversial because of the potential for gambling addiction, social stigma, and economic distortions. Moreover, studies show that the growth of lottery play is correlated with rising income inequality and a new materialism that emphasizes anyone can get rich if they are lucky enough.

Many states have adopted state lotteries. Typically, the legislature legislates a state lottery monopoly; establishes a government agency to run the lottery or a publicly owned corporation; begins operations with a modest number of relatively simple games; and, due to continuing pressure for additional revenues, progressively expands the program by adding new games and advertising more aggressively.

Critics argue that lotteries are inherently problematic because they promote gambling and encourage poor people to gamble, and they have been shown to have disproportionately negative effects on low-income households. Furthermore, they have been criticized for failing to adequately address the problem of gambling addiction and for rewarding companies that engage in deceptive practices.