Lottery is a form of gambling in which participants purchase tickets and hope to win prizes by matching a randomly drawn combination of numbers. Lottery games can be a form of entertainment for some people, while others view it as an unwise financial risk. This article looks at the history of lottery, its role in society, and whether it is a wise use of state resources.

Although the casting of lots to make decisions and determine fates has a long record in human history, public lotteries offering cash prizes are relatively recent, dating only from the 15th century. They first appeared in the Low Countries to raise money for town walls and fortifications and help the poor, according to records from the towns of Ghent, Utrecht, and Bruges.

In the United States, state-based lotteries have grown in popularity since the mid-20th century. Most have a central organization that distributes tickets, pools prize money, and oversees the issuance of awards. The first multi-state lotteries began in the 1980s, when smaller states grouped together to increase their jackpot sizes and attract more players.

The state-based lottery business is a highly competitive industry, and advertising budgets are focused on persuading people to spend their money on tickets. However, some argue that promoting a game of chance may lead to negative consequences for the poor and problem gamblers, and puts government at cross-purposes with the public interest. In addition, research suggests that state lotteries disproportionately draw participants from middle-income neighborhoods, while they generate little income from high-income areas.