A lottery is a game of chance in which participants bet a small amount of money for the opportunity to win a large sum. Some lotteries are run by private businesses; others are run by state or national governments. Lottery participants often buy numbered tickets that are shuffled for later use in a random drawing of winning numbers and prize money. A person who wins a lottery prize typically pays taxes on the money. The term “lottery” also refers to any activity in which the outcome depends on chance or fate: “They considered combat duty a lottery.”

Lotteries have long been used to raise funds for various purposes. In the 17th century, many states and communities organized lotteries to distribute land and slaves. Today, lotteries are widely used to raise funds for educational and other public purposes. Many people also play lotteries for entertainment.

In the United States, lottery revenue contributes billions to state coffers annually. The majority of lottery players are low-income, less educated, and nonwhite, while a disproportionate share spend significant amounts of their incomes buying tickets. The messages that lottery officials promote, that playing is harmless fun and the odds of winning are irrationally high, do little to offset this regressiveness.

For some people, however, the utility of monetary and other non-monetary gains outweighs the expected cost of losing. Then, buying a lottery ticket becomes a rational decision. For example, a person who believes that they will receive some form of divine reward for their good deeds may find the entertainment value in buying a ticket worth it.