Lottery is a system for drawing prizes, usually money, using numbers or symbols on tickets purchased by bettor. It is typically organized by a state or other government agency and operates with rules specifying the number and value of prizes, costs of organizing and promoting the lottery, and a percentage normally going as taxes or profits to the promoter or sponsor. Frequently, large prizes are offered along with a number of smaller ones.

Lotteries have been in use for many centuries, with the earliest recorded instances appearing in the 15th century in towns in the Low Countries for raising money to build walls and town fortifications and for helping the poor. Benjamin Franklin held a private lottery in 1776 to raise money for cannons for the defense of Philadelphia, and public lotteries were established in the American colonies shortly after that.

The total amount of money that is generated through ticket sales for the lottery can exceed $100 billion per year, making it one of the largest business industries. The proceeds are used to finance construction projects, public services and bolster state budgets. A portion of the revenue is also distributed to educational programs and other charitable efforts.

While the lottery draws wide public support, it is not without controversy. Critics argue that the lottery sends a mixed message, suggesting it encourages irresponsible behavior by making people feel they can win big and spend money they should be saving. Nonetheless, proponents emphasize that lotteries provide a convenient source of “painless” revenue contributed by players voluntarily spending their own money.