A lottery is an arrangement in which prizes are allocated through a process that relies on chance. The prizes may be goods, works, property, or money. In modern use, the term is often used to refer to state-sponsored lotteries in which the prize money is cash or other forms of currency. Some states also have private lotteries in which the prizes are goods or services.

Modern lotteries are usually run as a business with a focus on maximizing revenues and advertising to reach target groups. Critics point out that this puts the lottery at cross-purposes with its public function and promotes addictive gambling behavior. Furthermore, they argue that the lottery is a regressive tax on poor and lower-income people and contributes to other social problems.

The first recorded lotteries were held in the 15th century, when towns in Burgundy and Flanders used them to raise funds for town fortifications and to help the poor. In the beginning, the prizes were modest compared to today’s powerball jackpots. Eventually, they grew in size and complexity as the state and the public pressed for additional revenue streams. Moreover, the games were promoted heavily and advertised on TV, radio, newspapers and other media outlets.