A lottery is a contest of chance in which numbered tickets are drawn at random to determine a prize. Lotteries may be state or federal, and they can include cash prizes, goods or services, or even real estate. They are a common source of recreational gambling and can be a popular means of raising money for public purposes.

Generally, lotteries are run by government officials. They typically begin with a few games and a low prize value; over time, they increase in scope and complexity, and their advertising is focused on persuading people to play. Because lotteries are a form of gambling, they often generate controversy over negative effects on poor people and problem gamblers. In addition, they raise the question of whether it is appropriate for government to profit from the sale of a product that many citizens find objectionable.

When state governments began establishing lotteries in the immediate post-World War II period, they saw them as a way to expand their programs without imposing especially onerous taxes on middle and working class residents. But these early lotteries soon grew out of control. The result is that state governments have become dependent on lotteries for revenue, and they face pressure to keep increasing their revenues in an anti-tax era. In a world of increasingly limited resources, the growing dependence on lotteries is raising serious questions about how to manage them.