A lottery is a method of awarding prizes to one or more winners by using random chance. It is a common form of gambling, but can also be used in other ways, such as awarding units in a subsidized housing block or kindergarten placements at a public school. The financial lottery is the most familiar, where participants pay a small sum for the chance to win a large prize. While lotteries are often criticized as addictive forms of gambling, some of the money raised is used for good in the public sector.

The practice of making decisions and determining fates by the casting of lots has a long history, including several examples in the Bible. The ancient Israelites were instructed by Moses to take a census and then divide land among them by lot, and Roman emperors gave away property and slaves through lotteries at their Saturnalian feasts. Public lotteries were first introduced to the United States by British colonists.

State governments run lotteries to raise money for a variety of projects and programs. Some of this money goes toward prizes, but most is earmarked by each state for specific purposes. As with any government program, it is important to remember that the lottery is a political tool and, as such, should be subjected to the same kinds of scrutiny as other forms of government spending. This includes consideration of its impact on compulsive gamblers and its alleged regressive effects on lower-income groups.