A lottery is a game in which numbers are drawn at random and the winners receive prizes. Some governments endorse state-run lotteries, while others permit privately operated ones. Prizes may range from a few hundred dollars to millions of dollars. Most states require a winner to choose between receiving the full prize in a lump sum or annuity payments spread over many years. In addition to the prizes, some lotteries use a portion of their proceeds to pay commissions to retailers who sell tickets and to cover other administrative costs.

People play lottery games for a variety of reasons, including the desire to win big and the allure of instant wealth. But for those on lower incomes, lotteries can become a serious budget drain. Numerous studies show that those with low incomes make up a disproportionate share of lottery players. That has led critics to argue that lottery games are a form of disguised taxation on those who can least afford it.

The casting of lots to make decisions and determine fates has a long record in human history, with early examples appearing in the Bible and Roman emperors’ distribution of land and slaves by lot. The modern public lottery is of more recent origin, first appearing in the 16th century and becoming a common method for raising funds to support municipal repairs, such as paving streets and building wharves. In the United States, it also has been used to fund education and other public programs.