Lottery is a form of gambling whereby prize money is awarded based on the drawing of lots. It has a long history, with several instances in the Bible and ancient Roman lottery games. The practice has also been popular in modern times. State governments now run many lotteries. Some, such as those in Illinois and Arizona, focus on public education. Others use the funds for a variety of purposes, including business and economic development, environmental conservation, and health and human services programs, as well as adding to the general fund.

In addition to its financial benefits, the lottery is popular as a way to pass time and contribute to charitable causes. Its popularity has led to an increase in its advertising. Critics contend that lottery advertising is deceptive, presenting misleading information about the odds of winning (the largest jackpots are paid in equal annual installments over 20 years, with inflation and taxes dramatically eroding the current value); inflating the value of money won (lottery prizes are typically paid in cash rather than in assets); and otherwise manipulating public perception.

Moreover, lottery revenues have become an essential source of revenue for many state governments, particularly in the midst of anti-tax controversies. Consequently, lotteries are subject to constant pressures from lobbyists and others seeking to increase the size of prizes. As a result, states often end up with lotteries that are inconsistent with their public goals. In addition, studies suggest that lottery participants are disproportionately drawn from middle-income neighborhoods, while those in low-income areas participate to a lesser extent.