Lottery is a game of chance in which people can win a prize by putting numbers into a drawing. The odds of winning vary depending on how many tickets are sold and the amount of money invested in each ticket. Some state governments operate lottery games while others delegate the responsibility to private entities. In either case, the proceeds from a lottery are often used for public works and charitable purposes.

The first recorded lotteries were held in the Low Countries in the 15th century to raise funds for town fortifications and for helping the poor. In colonial-era America, lotteries played a significant role in financing the first English colonies and were widely used throughout the 18th century for such projects as paving streets, building wharves, funding Harvard and Yale, and more. Even Benjamin Franklin sponsored a lottery in 1776 to raise funds for cannons to defend Philadelphia against the British invasion, although this was unsuccessful.

State-sponsored lotteries have become a classic example of the evolution of public policy by piecemeal, incremental steps with little or no overall policy review and little regard for the general welfare. In the case of lotteries, substantial political influence is vested in convenience store owners (who sell the most tickets); suppliers to the lottery (whose heavy contributions to state political campaigns are widely reported); teachers (as lotto revenues are often earmarked for education) and legislators (as they quickly become accustomed to recurring lotto windfalls). In addition, many states subsidize a variety of other activities that would not otherwise be supported by tax revenue, such as public broadcasting and subsidized housing for the elderly and disabled.