Lottery is a system of allocation of prizes that relies on chance. It can take many forms, from a drawing of lots to decide ownership of a city block to a system for allocating housing units or kindergarten placements. The word “lottery” comes from the Middle Dutch term loterie, probably a calque on Old French loterie, itself derived from the Latin for drawing lots (“lottura”). Despite their reliance on chance, lottery systems are usually structured in such a way as to make winners as objective as possible.

Lotteries are often used to raise money for towns, wars, colleges, and public works projects. They may also be used to allocate subsidized housing units, kindergarten placements, or other scarce resources. Lotteries are sometimes considered socially acceptable, and even political parties occasionally hold them to raise money or recruit members.

Several states have started lotteries since New Hampshire became the first to do so in 1964. They grew rapidly in popularity as a means to fund public projects without raising taxes. In addition, they appeal to the human need to gamble. Billboards advertising the size of a jackpot can draw people who would otherwise not play to the game.

State lottery revenues have been a major source of income for governments, but critics argue that lotteries rely on the message that even if you lose, you should feel good because you did your civic duty and helped your kids. Furthermore, studies show that lower-income Americans are disproportionately represented among lottery players.