The lottery is an arrangement in which money or prizes are distributed among a number of people by chance. In the United States, the word is most often used to refer to a state-sponsored game in which tickets are sold and winnings are allocated by lot. Lotteries are popular in the United States, where they have generated large sums of revenue for states and local governments. They are also widely available in other countries, such as Canada and the United Kingdom.
The earliest state-sponsored lotteries date to the Low Countries in the 15th century, where they were used to raise funds for town fortifications and other public works. In the immediate post-World War II period, many states introduced lotteries to supplement their existing sources of tax revenue without burdening the middle class and working class with especially onerous increases in taxes.
Lotteries are largely financed by player fees and sales of state-sanctioned tickets, as well as from proceeds of other lottery games such as video poker and keno. The lottery is a substantial contributor to the economies of many states, particularly those in the Northeast and Midwest, where it is most heavily used.
The state lottery industry is remarkably stable. In virtually every state that has established a lottery, the same basic pattern is followed: the state legislates a monopoly for itself; establishes a public agency or public corporation to run the lottery; begins operations with a modest number of relatively simple games; and, under pressure for additional revenues, progressively expands the scope and complexity of its offerings.