Lottery is a form of gambling in which people pay money for the chance to win a prize based on the results of a random draw. Often the prizes are cash but other prizes can be things like units in a housing block or even kindergarten placements in a reputable public school. While lottery has been criticized as an addictive form of gambling, sometimes the proceeds are used to fund specific public projects.

In the US, state governments are responsible for running and marketing their own lotteries. They promote the games with a view to maximizing revenues which are then divided between the prize pool and retailer commissions. Many states also use some of the revenue for educational purposes. However, critics argue that this type of state-sponsored gambling is at cross-purposes with the mission of government to maximize wealth and reduce poverty.

In addition to state-sponsored lotteries, there are private and international lotteries. Private lotteries offer a variety of games and are operated as businesses for profit. As such, they are subject to the same types of criticisms as state-sponsored lotteries. They are also likely to be less transparent about their operations. Private lotteries also have the additional risk that they could be used to fund crime or other activities that would not be approved by state governments. As a result, they may attract more troubled individuals than state-sponsored lotteries. In addition, private lotteries are often able to charge higher prices for tickets than state-sponsored ones.