A competition based on chance in which numbered tickets are sold and prizes are awarded to the holders of numbers chosen at random. It is usually sponsored by a state or charity as a way of raising money. Also known as lotto, hlottery, or state lottery.

Lotteries are popular in the United States, but they have also been subject to criticism, especially in the context of problem gambling. Lottery advertising typically presents odds of winning as high as possible and inflates the value of the prize money (which is paid in annual installments over 20 years, with inflation dramatically eroding its current value). Furthermore, critics charge that lotteries promote the practice of gambling among vulnerable populations, including the poor, while profiting from that activity.

The first state-sponsored lotteries began in the fifteenth century in Europe, and the word lottery derives from the Dutch noun lot “fate” or “chance.” The modern era of state lotteries was launched by New Hampshire in 1964. Since then, all but one state has subsequently adopted a lottery. State governments earmark lottery profits for various purposes, including education.

Lottery participants tend to come from middle-class neighborhoods and are less likely to be poor than the population at large. However, there are notable differences by income level and other factors. For example, men play the lottery more than women, and blacks and Hispanics participate at higher rates than whites do. In addition, people who earn more money play the lottery more often.