The lottery is a form of gambling in which a prize (often money) is awarded to someone by the drawing of lots. In the United States, most state governments run lotteries. In addition to the state-run games, there are also private lotteries. Some of these are charitable and others are commercial.

The practice of making decisions and determining fates by casting lots has a long history, with numerous examples in the Bible. Public lotteries were a common way of raising funds for civic improvements in the early modern period, as well as to provide money for education and other programs.

In the immediate post-World War II era, lottery revenues allowed state governments to expand their array of services without imposing especially onerous taxes on middle-class and working-class people. Nevertheless, the growth of these revenues did not keep pace with state spending, which continued to increase. In the 1960s, the concept of a state-run lottery was reintroduced as a way to raise additional revenue in a manner that would not require a significant change in public perception of its purpose.

Historically, the majority of lottery revenue has gone to prize payments, with the rest split among various administrative and vendor costs, plus a portion designated for projects that each state chooses to fund. This allocation of lottery funds can be controversial, as critics accuse state government officials of using lotteries to fund favored programs and projects that might not otherwise be funded, and of misleading the public about the odds of winning.