A lottery is a form of gambling in which numbers are drawn for prizes. It is a popular form of fundraising, especially in the United States, and a common form of public recreation. A lottery is an example of an event whose outcome depends on chance, but it is not a game of chance in the strict sense of the word; winning the lottery requires dedication and study of proven lotto strategies.

A large number of people buy numbered tickets, and a drawing is held to determine the winners. Some lotteries award a single prize, while others give several smaller prizes. A lottery is considered a form of gambling, but it is generally regulated by law in most jurisdictions. The lottery is also a method of raising funds for public or charitable purposes, or for municipal or private improvements. It is not to be confused with a raffle, wherein an item of value is given away without payment or consideration (such as property).

The casting of lots for decisions and the determination of fates has a long history in many cultures, including the use of lotteries to fund municipal repairs in Rome. Modern state-sponsored lotteries are widespread, with more than thirty-nine states and the District of Columbia generating revenues from the game in 2002. Supporters praise the lottery as a painless alternative to higher taxes, but critics charge that its social and administrative costs impose a hidden tax on lower-income groups.

Among the early American leaders who saw utility in lotteries were Thomas Jefferson, who wanted to hold a lottery to retire his debts, and Benjamin Franklin, who used one to raise money for cannons for Philadelphia. The lottery became even more important in the eighteenth and nineteenth centuries as America developed its banking, taxation, and shipping systems and grew its population. It helped fund everything from roads to jails, and in the 1830s, it was a major source of money for public education.

Lottery is a multi-billion dollar industry in the United States, where the government regulates most of its operations. Its popularity stems partly from the fact that it offers a high chance of winning. But it also appeals to the American Dream, a notion of personal achievement based on hard work and merit, and the underlying belief that everyone will be rich someday if they are smart enough and lucky enough to win the lottery. Consequently, it is a favorite pastime of middle-class and upper-middle-class Americans. Lower-income people are less likely to play, and women, blacks and Hispanics play fewer lotteries than whites. The number of lottery plays decreases with age, and it falls with formal education. Nonetheless, there is considerable variation in lotteries by socioeconomic status and other factors. For instance, men play more lottery games than women, and ages between 35 and 44 play the least. Lottery revenue has risen with education and income, but it has fallen with age in the United States.