Lottery is a form of gambling in which a prize, such as money or goods, is awarded through the drawing of lots. It has been a popular way to raise public funds for centuries and has become one of the most important sources of state revenue, second only to property taxes. Its popularity has also made it a target of critics, who have charged that it promotes addiction and is regressive for lower-income groups.

Despite this, lottery has gained broad support in most states. Most people play it at least occasionally and the average amount spent per ticket is quite low. The odds of winning are extremely slim, but this has not stopped people from buying tickets in large numbers. The word lottery is believed to come from the Dutch noun lot (fate) and may be a calque on Middle French loterie, meaning “action of drawing lots.” Privately organized lotteries were common in Europe before 1776, when the Continental Congress approved one to raise funds for the American Revolution.

The modern lottery is usually state-run and uses a system of numbered balls or tickets to determine the winner. The prizes range from a few hundred dollars to millions of dollars, depending on the state’s budget and the size of the jackpot. Often, the prize amounts are announced on TV and radio and are advertised widely in newspapers and on the Internet. The state often sets up a commission to oversee the operations and makes sure there are no frauds or abuses.