Lottery is a form of gambling that involves drawing numbers and prizes. The modern lottery system is a complex system of games and prizes that is run by state governments. Historically, state lotteries have used proceeds to fund public works projects and public services such as education and health. However, critics have raised concerns about the social costs of state-sponsored gambling and the tendency to rely on unpredictable revenue sources. In addition, critics charge that state lotteries promote addictive gambling behavior and are a major regressive tax on lower-income groups.

The first recorded lotteries were held in the Low Countries in the 15th century to raise funds for town fortifications and to help the poor. These early lotteries were often informal, with tickets sold by local merchants. They were not based on any set rules and were not intended to be fair. The modern lottery was established in the United States in the 1960s and has grown to become a multibillion-dollar industry. Today, the lottery has diversified to include online games and instant tickets, as well as traditional drawing-based lotteries.

Traditionally, state lotteries have relied on the growth of revenues from ticket sales to maintain their profits. When these revenues decline, the lottery introduces new games and increases advertising to increase revenues again. In many cases, this cycle has created a dependency on lottery revenues that has undermined the state’s role as protector of the public interest. In addition, the proliferation of gaming has created a conflict between the state’s desire to grow the business and its duty to promote responsible gambling behavior.