Lottery is a gambling game in which a large number of tickets are sold and a drawing is held for prizes. The winnings of a lottery are usually predetermined, and the total value of prizes is usually larger than that of regular raffles. It is popular with the public because it provides an opportunity to win a substantial sum of money without any effort other than purchasing a ticket. It is also a means of raising funds for a specific purpose, such as the construction of schools or hospitals, that cannot be easily raised through taxes.

Historically, state governments have adopted lotteries as a way to raise money for public projects. For example, the Continental Congress in 1776 used a lottery to raise money to purchase cannons for the American Revolution. Private lotteries were also common in America in the early 1800s. They were a means of obtaining “voluntary” taxes, and they contributed to the founding of several American colleges, including Harvard, Dartmouth, Yale, King’s College (now Columbia), William and Mary, and Union.

Today, most state lotteries allocate about 50%-60% of the revenue toward prize payments and other administrative and vendor costs. The remainder goes to whatever projects the states designate, which varies from state to state. Lottery revenues are allocated in a highly fragmented and incremental fashion, with very little overall oversight. As a result, many state officials have become dependent on these revenues and are constantly under pressure to increase them.