A lottery is a game in which people purchase tickets for the chance to win a prize through a random drawing. It is commonly run by state governments. The casting of lots for decisions has a long history in human culture, and the first public lotteries to distribute prizes of money appear in the 15th century in towns such as Ghent, Utrecht, and Bruges. Some of these were to raise funds for town repairs, but others were specifically for the poor.

A typical lottery consists of several requirements: a system for recording ticket purchases, a method for randomly selecting winners, and a way to distribute the prizes. A lottery must also have a prize pool of sufficient size to attract potential bettors and sustain its operations. Some percentage of the prize pool must be deducted for the costs of organizing and promoting the lottery, and some portion must be set aside as revenue and profit for the state or sponsor. The remainder is available for the winner(s).

During the mid-20th century, states that were building larger social safety nets found it necessary to raise additional revenue. Lottery games seemed to offer a way to do this without onerous tax increases on middle- and working-class families. Yet, many studies have found that low-income families are disproportionately represented among lottery players, and that playing for the big jackpots can be a significant budget drain.