A lottery is a scheme to distribute prizes by chance. Participants buy tickets with numbers on them, and when the lottery is drawn, those with the winning numbers win. Generally, the more numbers on a ticket that match the winning numbers, the higher the prize.

Lotteries have been around for centuries. They helped fund the early British colonies, and were popular in colonial America as well. John Hancock ran a lottery to build Faneuil Hall, and George Washington sponsored a lottery to construct a road across the Virginia mountains (that one failed).

Today, lottery games are run as businesses, with a focus on maximizing revenues. Their advertising is aimed at persuading people to spend money on them. It may take many forms, from commercials to radio and television ads, to direct mail. It may also take the form of contests, where participants answer questions or complete tasks to be eligible for a prize.

When state governments establish a lottery, they often delegate its administration to a special lottery commission. This commission is usually tasked with selecting and training retail clerks to use lottery terminals; promoting the lottery; paying high-tier prizes; and educating retailers and players on the laws of gambling.

Because lottery officials are charged with maximizing revenue, their policies are influenced by the interests of specific constituencies, including convenience store operators; suppliers of equipment used to play lottery games (heavy contributions to state political campaigns are regularly reported); teachers in states where lottery proceeds are earmarked for education; and the general public. As a result, few, if any, states have a coherent lottery policy.