The lottery is a form of gambling in which numbers are drawn at random for prizes. It is generally run by governments. Lottery is a common form of fundraising for public projects, such as school construction or road repairs. The first recorded lotteries were held in the Low Countries in the 15th century to raise money for town walls and for poor relief.

Lotteries are generally regulated by state law and most states have a dedicated lottery division that selects and licenses retailers, oversees promotions, pays high-tier prizes, and enforces state laws. Some states also prohibit the sale of certain types of lottery games.

State legislators often use the money raised by lotteries to meet specific statutory requirements, such as funding public education or local government services. Some states even use lottery profits to fund public employee pensions and health insurance benefits.

The success of lotteries in raising revenue for public programs has led to a second set of concerns, including the problem of compulsive gambling and the regressive effect of lotteries on lower-income groups. Despite these concerns, lotteries are a popular source of painless taxation and continue to grow in popularity.