Lottery is a form of gambling in which numbers are drawn to win a prize. It has become an integral part of the state governments in the US, with 37 states and the District of Columbia running a lottery. Lottery has been popular for its alleged ability to provide painless revenue for state government programs during an anti-tax era. Lottery revenues typically increase dramatically following a lottery’s introduction, then plateau or even decline. The reliance on lotteries for state revenues has led to expansion into other forms of gambling such as keno and video poker, and more aggressive promotional efforts.

The history of lotteries goes back to the 15th century, when towns in the Low Countries would hold public lotteries to raise money for town fortifications and the poor. Benjamin Franklin ran a lottery to fund the purchase of cannons for defense of Philadelphia during the Revolution, and George Washington held one in 1768 to finance construction of a road over a mountain pass, though the so-called Mountain Road Lottery was unsuccessful.

Most states’ lotteries are run as a business with a focus on increasing revenue through advertising. This has raised questions about the appropriateness of state officials promoting an activity that benefits only a small segment of society, and whether this is in the best interests of the larger population. Critics also charge that lottery advertising is often misleading, frequently presenting misleading odds of winning and inflating the amount of money that can be won (prizes are paid out in annual installments over 20 years, with inflation and taxes dramatically eroding the current value). The English word lottery is believed to derive from Middle Dutch lotterij, from the verb lote “fate” or “luck.” Early advertisements included words such as “fate,” “luck,” and “fortune.” In the 19th century, state officials began to rely on lotteries for a large share of their revenues.