Lottery is a method of raising money for a government, charity, or other public purpose by selling tickets bearing numbers and conducting a drawing for prizes. The practice of making decisions and determining fates by the casting of lots has a long history, including several examples in the Bible and a popular dinner entertainment called an apophoreta in ancient Rome, in which guests were given pieces of wood with symbols on them and then drawn for prizes that they carried home (hence the name). The first public lotteries to distribute prize money were held in the 15th century.
Early state lotteries were little more than traditional raffles, in which people bought tickets for a drawing at some future date, typically weeks or months away. Innovations in the 1970s, however, transformed the industry. Among other things, the introduction of “instant games”—like scratch-off tickets—lowered the cost of entry and greatly increased the size of potential prizes. These changes created a demand for new types of games, and revenues grew rapidly.
Today, lottery games are widespread in the United States. Almost all state governments have legalized them, and a large proportion of Americans play the game at least occasionally. Lottery proceeds have consistently won broad public support, especially when they are perceived as a source of painless revenue and earmarked for a specific public good like education.
Lottery funds are used for a variety of purposes, and a significant percentage goes to pay out prizes. In addition, there are commissions paid to ticket retailers and administrative costs like advertising and salaries for lottery administrators.