Lottery is a game in which numbers are drawn at random to win prizes. The first recorded lotteries were held in the Low Countries in the 15th century, raising funds for a variety of uses including building town fortifications and helping the poor.

Lotteries are a source of revenue for state governments. They are popular and widespread, and they often generate more than a billion dollars in sales per year. They also contribute to the development of a sense of fair play. While many people enjoy playing the lottery, there are also concerns about compulsive gambling and regressive impacts on lower-income groups. Those concerns typically arise because of the specific nature of a lottery’s operations and the ongoing evolution of its policy.

When state budgets come under strain, they face the choice of cutting spending or increasing revenues. It is politically difficult to raise taxes paid by all residents (like sales and income taxes), and many states have turned to jacking up “sin taxes” like alcohol, tobacco, and gambling to boost revenue. This revenue source provides flexibility to state budgets and is a vital part of the states’ economies.

Many state lotteries have a history rooted in the legalization of illegal number games. These were wildly popular because they offered the prospect of instant riches in an age of inequality and limited social mobility, and politicians viewed them as a painless alternative to tax increases or cuts to public services. Research has shown that the objective fiscal conditions of a state do not seem to have much bearing on whether or when a lottery is adopted.