A lottery is a game of chance that offers a prize to multiple people through a random drawing. Lotteries are often run by governments to raise funds for public purposes. Modern examples include military conscription, commercial promotions in which property is given away by random procedure, and the selection of jurors. By contrast, financial lotteries require payment of a consideration (money or other property) in order to have the opportunity to win a prize. These types of lotteries are similar to gambling and are therefore considered a form of illegal gambling.

The practice of distributing property by lottery can be traced back centuries, with the Old Testament instructing Moses to divide Israel by lot and Roman emperors giving away slaves in this way as part of their Saturnalian feasts. Lotteries became popular in the United States after 1776 when the Continental Congress voted to hold a lottery to raise money for the American Revolution. Privately organized lotteries were also common in the 1700s and helped finance everything from the building of colleges to supplying cannons for Philadelphia’s defense against the British.

State government advocates argue that the lottery is a painless source of revenue that can help support public services such as education, especially during economic stress. However, studies show that the popularity of lotteries is not linked to the actual fiscal conditions of a state, and even when states are in good financial health, they continue to adopt lotteries. A major reason is that the public believes that lotteries benefit low-income residents. In reality, the large majority of players and revenues come from middle-income neighborhoods.