Lottery is a form of gambling in which numbers are drawn to determine a winner. Players purchase tickets and hope to win a prize, which can range from cash to goods and services. The odds of winning vary wildly, as do ticket prices and the amount of the prize. Lotteries have been criticized for being addictive forms of gambling. While many people enjoy playing the lottery, they can also find themselves in financial trouble after a large win. In addition, the prizes on offer are often less than what is needed for an improved quality of life.

In the United States, state governments have been relying on lotteries to raise money for decades. The main argument used to justify state-sponsored lotteries is that they provide “painless” revenue: that is, lottery proceeds are voluntarily spent by players (who do not view it as taxation) for the benefit of a specific public good. As a result, states that adopt lotteries typically have a broad base of support for the new activity. This includes convenience store operators (the usual vendors for lotteries), suppliers of lottery products (heavy contributions by these companies to state political campaigns are regularly reported); teachers (in those states in which revenues are earmarked for education); and state legislators, who are quick to embrace the new source of revenue.

Historically, the majority of state-sponsored lotteries have been traditional raffles, with the public purchasing tickets for a drawing at some future date—usually weeks or even months in advance. However, innovations since the 1970s have changed this picture. Lotteries now offer a wide variety of instant games, with higher odds but smaller prizes. Revenues for these games initially grow rapidly and then plateau or even decline, so that lotteries must continue to introduce new games in order to sustain and expand their profits.