Lottery is an arrangement in which prizes are allocated by a process that relies on chance and the results of a drawing. Prizes may include one or more large sums of money, and sometimes goods or services. Lotteries are popular with the general public and raise money for a wide variety of purposes. However, some critics view them as an addictive form of gambling.

The lottery has gained widespread popularity in many states and is a major source of revenue for state governments. Despite these concerns, research suggests that lotteries are a relatively safe and reliable source of funding for public-purpose projects. The lottery is also a popular way for politicians to increase their own tax base without raising taxes on the general public. In fact, lotteries are often viewed by state government officials as a “painless” source of revenue—especially during times of economic stress, when state budgets face cuts and increases in the cost of government services.

State lotteries usually begin operations with a small number of fairly simple games; then, to maintain and perhaps increase revenues, they systematically introduce new games, many of which are similar to the existing games. Some of these innovations have been very successful, such as instant games (such as scratch-off tickets) that offer lower prize amounts but more frequent winnings.

The success of these innovations, and the state’s desire to raise revenue, have led to a growing number of questions about the legitimacy of the lottery. Some of these concerns relate to the effects of the lottery on the poor, problem gamblers, and other social issues, while others concern broader questions about public policy.