Lottery is a form of gambling in which people pay a fee to have a chance at winning a prize. The prizes may be money, property, or services. Some lotteries are run by state governments while others are privately promoted and sold. Lottery proceeds are often used to help finance public services and infrastructure such as roads, schools, hospitals, and utilities.

The first recorded lotteries occurred in the Low Countries in the 15th century, with towns using them to raise funds for town fortifications and to help the poor. They grew in popularity through the 16th century, and were widely accepted as an appropriate function of state government. The lottery became especially popular in the post-World War II period, when states needed to expand their social safety nets but did not want to impose onerous taxes on middle and working classes.

Initially, most lotteries operated like traditional raffles, with people purchasing tickets and waiting to see if they won. Revenues expanded dramatically, but then leveled off. In order to maintain revenues, lotteries began to introduce new games and be more aggressive in promoting them through advertising.

This has raised concerns about the ethical and legality of the lottery, including its alleged promotion of addictive gambling behavior, its role as a major regressive tax on lower-income groups, and its general tendency to promote gambling over other public goods. Other criticisms include the fact that lotteries tend to exclude certain groups from participation, such as minors or those with low incomes; the high cost of lottery tickets, compared to the size of the prizes; the reliance on promotional tactics rather than on scientific evaluation; and a conflict between the lottery’s desire to maximize revenues and its duty to protect the public welfare.