A lottery is a drawing to determine the winners of prizes based on chance. It is often conducted by state governments to raise money for a variety of purposes. These funds may be used for public works projects, such as roads and schools. They can also be used to provide scholarships for higher education. Some states use the proceeds of a lottery to supplement their traditional revenue sources, such as income taxes or sales tax. Some states prohibit the sale of lotteries, while others encourage them. The controversy surrounding a lottery’s merits often depends on how the prize money is distributed and whether it promotes compulsive gambling or exacerbates social problems, such as poverty and inequality.

The history of lotteries dates back to ancient times. In biblical times, property was distributed by lot. The Old Testament contains many examples of this practice, including a passage that instructs Moses to divide the land among the people by lot. Roman emperors held lotteries to give away slaves and other items. Lotteries were also popular in colonial America, and Benjamin Franklin sponsored an unsuccessful lottery to raise money for cannons during the American Revolution. Privately organized lotteries were also common in England and the United States, and they helped build such institutions as Harvard, Yale, Dartmouth, and King’s College.

During the first years of a new lottery, revenues typically rise quickly, but after that they level off or even decline. This phenomenon, known as “lottery fatigue,” drives the introduction of new games to maintain or increase revenue.