A lottery is a game in which a number of tickets are sold and prizes are awarded according to a random procedure. The prize money may be cash or goods, services, property, or other valuable items. Lotteries are often used to raise funds for public purposes or for a specific cause such as education. Modern public lotteries are governed by state law and are operated by a separate lottery division within a state government. Private lotteries are often run by companies to promote or market their products and services.

Lottery is popular with many Americans, especially those on lower incomes, who can play for as little as a few dollars. But critics say that the money is just a disguised tax on those who can least afford it. They point to research showing that lottery playing decreases with formal education and rises with family income. They also complain that the lottery is addictive and a source of financial stress for low-income families.

The first recorded lotteries to offer tickets for sale with a chance of winning a prize were held in the Low Countries in the 15th century, when towns used them to raise funds to build walls and town fortifications. Later, public lotteries were held to award military conscription passes and to select members of the jury in criminal cases. Benjamin Franklin’s attempt to hold a lottery in 1776 to raise funds for the American Revolution was unsuccessful, but smaller private lotteries continued to operate throughout the country.