A lottery is a game of chance in which numbers are drawn at random to determine the winners of prizes. Often, the prizes are cash or goods. Lottery games are regulated by state law.

The first state lottery was established in New Hampshire in 1964. Since then, nearly all states have adopted them. Although many different arguments for and against state lotteries have been advanced, they all follow remarkably similar patterns: states legislate a monopoly for themselves; establish a public agency or corporation to run the lottery (rather than licensing a private firm in exchange for a portion of profits); begin operations with a modest number of relatively simple games; and, driven by constant pressure for additional revenues, progressively expand the scope and complexity of the lottery.

Historically, lottery revenue has supported a broad range of public spending projects. For example, in colonial America lotteries financed roads, canals, bridges, colleges, libraries, churches, and a variety of other public ventures. Benjamin Franklin held a lottery in 1740 to raise funds for cannons for Philadelphia during the American Revolution.

The popularity of the lottery varies by social class and other factors. For example, men play more than women; blacks and Hispanics play more than whites; the young and old play less than those in the middle age range; and Catholics play more than Protestants. Income also has an impact on lottery play, but the relationship is complex. Lottery plays tend to decline with formal education, while a person’s total income increases with his or her educational attainment.