The lottery is a form of gambling where people pay to have a chance at winning prizes. Prizes may range from cash to goods or services. Many lotteries offer a single large prize, while others award multiple smaller prizes. Lottery prizes are normally based on the number of tickets sold, with a percentage going to the cost of organizing and promoting the lottery and to profit for its organizers or sponsors.

Making decisions and determining fates by casting lots has a long history in human culture, with the first recorded public lotteries for material gain taking place in the 14th century in cities such as Bruges and Saxony. Today, state-run lotteries are common and popular in the United States and many other countries.

While the majority of lottery participants are middle-income, research suggests that lower-income groups participate in disproportionately low proportions compared to their percentage of the population. This fact has led some critics to suggest that state lotteries are exploiting the poor and may promote gambling addictions.

Moreover, the millions of dollars spent by lottery players as a group add up to billions in government receipts that could have been used for other purposes, such as improving public education or lowering taxes. Given that most state lotteries are essentially businesses that are aimed at maximizing revenues, they run the risk of being at cross-purposes with the public interest.