A lottery is a type of gambling wherein a prize (often money) is allocated by a random drawing. It is common in games such as sports or finance, and can also be used to distribute other prizes, such as subsidized housing units or kindergarten placements. A number of states have legalized lottery games, and while they are often criticized as addictive forms of gambling, sometimes the winnings are used for public good.

In the US, state lotteries are regulated by law and are operated by government agencies. They typically offer a variety of games, including scratch-off tickets, bingo, and other types of game with numerical odds. Some lotteries are played by individual players, while others are played by groups or organizations. The prizes offered by the lotteries can range from a few dollars to millions of dollars.

The public has a strong appetite for lottery play, and the prizes can be very large. It is difficult to gauge the total amount of money paid out by a lottery, since the winnings are often disbursed over decades in an annuity, rather than being a single lump sum. However, it is worth noting that lottery purchases represent billions in foregone savings by people who could have been saving for retirement or college tuition.

Once established, a lottery is a remarkably durable form of public policy. It is rare that a state abandons a lottery after it has been in operation for a few years, and the revenue streams are generally stable. A few factors account for the longevity of lotteries. The first is that they appeal to a broad constituency, including convenience store operators; lottery suppliers, who make heavy contributions to state political campaigns; teachers (in states in which the proceeds are earmarked for education); and legislators, who rapidly get accustomed to an extra source of revenue.