a gambling game or method of raising funds for some public charitable purpose in which tickets are sold for the chance to win prizes based on chance. The term is also used for any scheme in which the distribution of prizes depends on chance.

Lotteries have long been a popular method of raising money for public projects in many countries. They have a history in America dating back to colonial times, when they were used to fund paving streets, building wharves and even Harvard and Yale. Lotteries continued to be a part of American life throughout the 19th and 20th centuries, helping finance public works projects, road construction, and public health initiatives.

Most states have laws that govern how the lottery operates and how the proceeds are spent. These laws delegate to a state lottery board or commission responsibility for selecting and licensing retailers, training employees of retail stores to sell and redeem lottery tickets, promoting the lottery games, paying high-tier prize winners, and ensuring that retailers and players comply with lottery law and rules.

Lottery officials often find themselves dealing with the whims of specific constituencies, such as convenience store owners (who are often the ticket sellers); suppliers to the lottery (heavy contributions from these companies to state political campaigns are widely reported); teachers in states where lottery revenues are earmarked for education; and state legislators (who become accustomed to receiving large lottery appropriations that reduce their general budget appropriations). The result is that few, if any, state lotteries have a coherent “lottery policy.” The evolution of lotteries is a classic case of public policy being made piecemeal and incrementally with little overall overview or consideration of the welfare of the general public.