The lottery is a popular form of gambling in which individuals purchase a ticket for a chance to win a prize. The prize can range from a lump sum of money to a specific item or service. Many states have legalized state-run lotteries, which are usually conducted as traditional raffles or scratch-off games with a variety of prizes and odds of winning. In some cases, the proceeds are used for a public purpose. For example, the lottery may award units in a subsidized housing development or kindergarten placements at a reputable public school.

The word “lottery” comes from the Old English verb loten “to fall by chance.” It is often used to refer to a process of drawing lots for a prize, such as a land grant, as well as to any activity that involves the random distribution of property. In the latter sense, modern lotteries include commercial promotions in which property is given away and the selection of jury members from lists of registered voters.

Once established, lotteries usually gain broad popular support. They are able to generate substantial revenues and have a strong impact on state budgets. But the fact that they are a form of gambling makes them subject to criticism. Critics cite the possibility of compulsive gambling and their regressive effect on low-income groups. State officials often face a challenge in keeping these problems in check. They also must cope with the fact that the lottery’s ongoing evolution frequently overtakes any policy decisions made at its establishment.