A lottery is a form of gambling where people pay a small amount to have the chance of winning a big prize, such as a sum of money. Its history goes back at least to the 15th century, when public lotteries were used in the Low Countries to raise money for building town walls and for poor relief. In modern times, lotteries play a role in state governments’ efforts to finance infrastructure projects and school facilities.

Despite the odds of winning being infinitesimal, many lottery players say they enjoy the thrill of playing for the chance to become wealthy at a relatively low risk. The game is marketed to them as a good investment – a way of putting dollars in the bank that they wouldn’t otherwise have. But for those with the lowest incomes, purchasing tickets can be a costly habit that drains their budget. Studies have found that these individuals make up a disproportionately large share of lottery players. Critics call it a disguised tax on those who can least afford to participate.

Most states enact laws to regulate their lotteries and delegate responsibility to a lottery commission or agency that chooses and licenses retailers, promotes the games, and collects ticket sales taxes. The agency also oversees the distribution of prizes and conducts regular public meetings to determine how the proceeds should be dispersed. Most distribute a portion to education, while some disperse the money to business and economic development programs and other local priorities.