Lottery is a form of gambling where numbers are drawn at random for a prize. Some governments outlaw it, while others endorse it and organize a state lottery or national lottery. A government that sponsors a lottery usually establishes a separate lottery division to oversee the operation. This division selects and licenses retailers, trains employees of those retailers to use lottery terminals, redeem tickets, distribute and pay high-tier prizes, promote the lottery game to potential players, and ensure that both retailers and players comply with the state’s laws and rules.

The casting of lots for decisions and fates has a long history in human society, and many early lotteries raised money for public purposes. The first public lotteries to offer tickets with prizes in the form of money were recorded in the Low Countries in the 15th century, for a variety of purposes, including town repairs, and the provision of help to the poor.

A common feature of modern lotteries is that the prize money (the total value of the prizes after expenses such as those for promotions and taxes have been deducted) is fixed. This allows for the publication of odds that can be understood and compared by potential participants, as well as more accurate comparisons between competing lotteries.

The growing popularity of lotteries has resulted in criticisms such as their possible negative consequences for compulsive gamblers and their alleged regressive effects on lower-income groups, as well as questions about whether the lottery is an appropriate function for a state to take on. Moreover, the tendency to run lotteries as businesses rather than public service institutions often means that public policies are made at cross-purposes to the ongoing evolution of the industry.