Lottery is a scheme for the distribution of prizes, often money, by chance. It is a form of gambling and is one of the many forms of gambling that governments permit. A lottery is typically run by a state government and offers chances to win a prize by purchasing tickets for a drawing. Lotteries are a form of taxation and may have other purposes, such as raising funds for public projects. The word lottery is believed to be derived from the Middle Dutch word loterie or from the Old French loterie, both of which meant “drawing of lots.”

In modern times, a large number of states have legalized the sale and purchase of lottery tickets in order to raise revenue for a variety of public purposes. The lottery is a popular form of recreation, and a significant percentage of the population plays it at some time during their lives. It is also a means of distributing public benefits, such as free medical care and education, to those who do not have sufficient incomes.

While the vast majority of people who play the lottery do not win, there is a group of people who regularly spend thousands of dollars per year on ticket purchases. This group is disproportionately lower-income, less educated, and nonwhite, and it accounts for 20 to 30 percent of the total lottery playing population. The purchases of these people defy decision models that are based on expected value maximization, suggesting that something else must be driving their behavior.