The lottery is a game of chance in which numbers are drawn to determine the winner. It is a form of gambling, and a popular source of funds for various public projects, including education. Some states use the lottery as a substitute for raising taxes, while others promote it as a way to stimulate economic growth. Although the casting of lots to make decisions and determine fates has a long history (with several instances in the Bible), lotteries as an organized method for material gain are relatively recent in human history.

Lottery rules vary, but all have common elements. There must be some means of recording the identities of bettor and stakes placed, and a mechanism for determining whether the ticket is among those selected in the drawing. Many modern lotteries use computer systems to record purchases and affix a unique identification number or symbol on each ticket; the winning ticket is determined by comparing this with a list of purchased tickets.

A percentage of ticket sales is normally earmarked as administrative costs and profits; the remainder is the prize money pool. In some cultures, a substantial portion of the pool must be set aside for costs and prizes of lesser value; in other cultures, a proportionately large jackpot prize must be offered. The choice of prizes and the amount of ticket sales required to generate them is a major consideration in establishing a lottery program. As with other state revenue sources, lottery advertising must be focused on persuading potential bettors to spend their money.