Lottery is a form of gambling whereby participants pay to participate in a random drawing for a prize. In the past, this has typically been a large cash prize. In recent times, lottery prizes have also included items such as cars and houses. Unlike most forms of gambling, which have a long record in human history, lottery prizes are usually awarded for material gain rather than recreation.

In the early colonies, public lotteries were an important method of raising money for local projects. They helped fund schools, roads, canals, churches, and colleges. At the start of the Revolutionary War, the Continental Congress used a lottery to try to raise money for the colonial army.

By the end of the 1700s, public lotteries had become common throughout the country. In 1826, there were 420 state and private lotteries in operation. They generated enormous sums of money and attracted intense public debate, both on the merits of the practice and on how it should be conducted.

Although lotteries are generally seen as desirable, critics point to the regressive effects on lower-income groups and argue that they encourage harmful behavior. In addition, lottery advertising frequently uses misleading information about the odds of winning (e.g., by inflating the percentage chance of winning a jackpot) and promotes gambling to people who would not otherwise play. As a business, lotteries are run to maximize revenues, so their advertising necessarily focuses on persuading people to spend money on tickets.