Lottery is a form of gambling where players purchase tickets and win prizes if enough of their numbers match those that are randomly drawn by machines. State governments generally enact laws governing lottery operations and delegate to a state agency responsibility for the selection of retailers and their employees, training them to use lottery terminals, selling and redeeming tickets, paying high-tier prizes, and promoting the lottery to the public.
The practice of drawing lots to make decisions or determine fates has a long history (including several instances in the Bible), but lotteries with cash prizes are relatively recent, starting with the distribution of tickets at Roman banquets, followed by a series of events during the 15th century that led to the earliest recorded lottery to distribute money and other items as prizes. Lottery revenues are usually earmarked for specific purposes, and this aspect of the games has helped to sustain public approval in states with them even when the state government is not facing budgetary pressures.
However, critics argue that the promotion of a form of gambling is at cross-purposes with the state’s other public functions and can have negative consequences, especially for those with low incomes (who tend to play more frequently than others), as well as for problem gamblers and those who become dependent on winning large sums of money. They also point out that, since lotteries are not a discretionary revenue source and depend on a steady stream of new customers to maintain or increase their revenues, they are vulnerable to market forces that can rapidly change the business landscape.