A lottery is a game in which people buy tickets for a chance to win a prize, usually money. It is a form of gambling, though some people play it for charitable or educational purposes. Historically, lotteries have been a popular way to raise money for various projects and public charities. In the 17th century, lottery games helped finance public works projects such as canals and roads. Today, many state governments hold regular lottery games to raise revenue for education, health, and other public programs.

The first recorded lotteries were keno slips used in China during the Han dynasty between 205 and 187 BC. In the 15th century, lottery games began to appear in Europe, where they were often used as a way to raise money for wars or charity. In the 16th century, Francis I of France permitted private and public lotteries with cash prizes in several cities. In colonial America, lotteries played an important role in raising funds for both private and public ventures, including roads, churches, colleges, canals, and bridges. They also funded the foundation of Harvard, Dartmouth, and Yale, as well as the University of Pennsylvania.

Lottery is a complicated business, and the people who run it have to carefully balance the needs of their customers with the need for transparency and accountability to the public. In the immediate post-World War II period, states were expanding their social safety nets and were relying on lotteries to do so without raising taxes.