Lottery is a game of chance in which numbered tickets are sold for the purpose of winning prizes, often money. It is a popular form of gambling and a method for raising funds for governmental purposes. The word lottery is derived from the Dutch noun “lot” meaning fate, and the action of drawing or casting lots is sometimes described as a “lottery.”
Governments frequently use lotteries to raise revenue for various programs in lieu of direct taxes on citizens. The prevailing rationale is that taxpayers would be more willing to hazard a trifling sum for the opportunity of considerable gain, as long as the risk is not excessively high. This argument has been successful in winning the approval of the legislatures and public referendums in most states that have adopted lotteries.
State governments have also promoted lotteries as sources of “painless” revenue, since players voluntarily spend their own money for the benefit of the public good. This argument has proven to be quite effective, and it is a major factor in the popularity of the lottery.
Most national lotteries are run as public agencies or corporations; they typically begin operations with a limited number of relatively simple games and expand their offerings in response to demand for additional products. Although state-run lotteries are generally considered to be a legitimate source of funding, there is concern that they promote vice and can be viewed as a disguised tax on those of modest means.