Lottery is a type of gambling in which numbers are drawn for prizes. Prize amounts can be large. The first recorded lottery took place in the Low Countries during the 15th century, when towns used it to raise funds for town fortifications and to help the poor. The name “lottery” likely stems from the Dutch word for fate (“lot”).

Since their inception, state lotteries have been a common source of public revenue in many states. Their adoption has been motivated by voters’ desire for governments to spend more money, and by politicians’ perception of lotteries as a “painless” revenue source that does not require tax increases or cuts in other programs.

Regardless of the actual fiscal health of state governments, however, lottery revenues have consistently won broad popular approval. This is partly because of the public’s perception that lottery proceeds are dedicated to a “public good” (such as education), and that playing the lottery is a voluntary, socially acceptable form of gambling.

In addition, state lotteries have been a major source of funding for political parties and candidates. The popularity of lotteries is also fueled by the fact that the odds of winning are very small, and that ticket prices are relatively inexpensive. Lottery play is disproportionately popular among the young, blacks, and Hispanics. It is also a popular pastime for men and women with high incomes, although their participation tends to decline with increased formal education. In contrast, the participation of the elderly and the poor is much less significant.