A lottery is a method of selecting a prize (money, goods, services) by drawing lots. Modern lotteries are widely used in military conscription, commercial promotions in which property is given away and in a variety of other ways. Most lotteries are considered to be gambling, since payment of a consideration—such as money or effort—is required for a chance to receive the prize. However, in some instances the lottery method is used for non-gambling purposes such as the selection of jury members and the awarding of public grants.

The first lotteries were held in the 15th century in the Low Countries to raise funds for town fortifications and to help the poor. The word lotteries is probably derived from Middle Dutch loterie, via Old French loterie and medieval Latin lotterie “action of drawing lots”.

In the early years of state-sponsored lotteries, public debate focused mainly on the desirability of the concept. After the lottery was established, however, criticisms shifted to specific features of its operation – in particular, its alleged regressive impact on lower-income groups, and its tendency to generate compulsive behavior among gamblers.

A second issue with the lottery is that it tends to generate substantial revenue in a short period of time, then level off and even decline. To keep revenues growing, the lottery must constantly introduce new games to maintain and increase its popularity. Lottery advertising is also frequently criticized for presenting misleading information, inflating the value of prizes (in which case inflation rapidly diminishes their current value), and so on.