A lottery is a process of awarding prizes based on chance. The word lottery is probably derived from Middle Dutch loterie, from the Middle High German loteri “fateful,” or possibly from Middle French loterie (which itself is probably a calque on Middle Dutch lotinge “action of drawing lots”). Generally, a lottery consists of tickets that bear numbers that are drawn in order to determine the winners. In the United States, state governments oversee and organize most lotteries.

The first modern state-sponsored lotteries were established in the Low Countries during the 15th century, where towns used them to raise money for town fortifications and help poor citizens. King Francis I of France was a proponent of the idea and authorized the creation of the Loterie Royale in 1539.

Lotteries gain and retain broad public approval when they are perceived as benefiting a specific public good, such as education. In addition, they are often able to attract a broad constituency of convenience store operators, lottery suppliers (who usually make heavy contributions to state political campaigns), teachers (in states where a portion of revenue is earmarked for education), and state legislators who become accustomed to the steady flow of revenues.

While it is difficult to definitively establish that lotteries cause people to become addicted, the evidence is strong enough to warrant a warning that lotteries should be avoided by people with gambling problems. A number of studies have found that those who play the lottery frequently spend more than they can afford to lose, and they tend to gamble more aggressively when they are under stress or in need of extra cash.