A competition based on chance, in which numbered tickets are sold and prizes are given to holders of the numbers drawn at random. Lotteries are popular ways for governments to raise money and for charities to distribute funds. They are also often seen as a form of gambling.
Most states operate state-run lotteries. In these, people pay a small amount to purchase a chance to win a prize, which can be anything from cash or goods to services or even a house or car. The lottery is considered gambling because it involves paying for a prize with an uncertain outcome, but unlike most other forms of gambling, state-run lotteries have a legal definition of winning that excludes payments for “promotion” or transportation of the prizes themselves.
Lotteries have a long history in the West, dating back at least to ancient times. The first recorded public lottery, for municipal repairs in Rome, was organized by Augustus Caesar in the 1st century AD. Lotteries were widely used throughout the Middle Ages and into the early modern period, including for charitable purposes. Benjamin Franklin held a lottery in the American Revolution to finance cannons, and Thomas Jefferson organized one to alleviate his crushing debts.
In recent decades, lottery revenue has expanded dramatically. But the popularity of state lotteries is inversely proportional to the fiscal health of the states that sponsor them. Despite this, the political rationale for lotteries has remained unchanged: they are promoted as a painless source of revenue and, according to one expert, “voters want their governments to spend more.” As a result, many states rely heavily on these revenues.