The lottery is an arrangement in which prizes, normally cash, are allocated by a process that depends entirely on chance. It is usually operated by government, and the profits are used to fund various public programs. Most lotteries are played over the Internet or by telephone, but some use traditional retail outlets to sell tickets and conduct drawings. The popularity of lotteries in the 1980s may have been triggered by widening economic inequality, a new materialism that asserted anyone could get rich with sufficient effort or luck, and popular anti-tax movements.

Most state lotteries are legally monopolies, meaning that they do not allow commercial competitors to compete with them and that all proceeds are used by the state for public purposes. These lotteries typically begin with a small number of relatively simple games and then, under constant pressure for additional revenues, gradually expand in scope by adding new games.

While the odds of winning are low, the lottery has become a popular activity that raises billions of dollars annually. Some people play for fun and others believe that it is their answer to a better life.

The lottery industry is a complex one that relies on a broad range of constituencies. These include convenience store operators (the primary retail outlets for lotteries), lottery suppliers (heavy contributions from these firms to state political campaigns are often reported), teachers (in those states in which the proceeds from a lottery are earmarked for education), and players themselves.