A lottery is a form of gambling in which a prize is awarded to those whose numbers are drawn. It is a process often used to fill vacancies in sports teams, or in schools and universities, where there are many equally qualified applicants. Unlike most other types of gambling, a lottery does not require payment for a chance to win. It is also a method of choosing people for military conscription, commercial promotions in which property is given away randomly, and public service jury selection.

Historically, lotteries have been popular as a painless way to raise money for all sorts of public purposes, from building colleges to providing relief for the poor. They were introduced to the United States by British colonists, and despite initial resistance, state lotteries became a widespread practice in the country.

While many states now have lotteries, they are often heavily regulated. Some critics charge that advertisements for the games are misleading, with inflated jackpot prizes and a misleading depiction of how the money is actually paid out (lottery winners typically receive their winnings in annual installments over 20 years, with taxes and inflation dramatically reducing the actual value of the prize). Others charge that lotteries are addictive and that they discourage other forms of legitimate gambling.

Lotteries are also criticized for their role in generating income inequality. The bulk of players and proceeds come from middle-income neighborhoods, while the poor participate at disproportionately lower rates. In addition, some studies suggest that the winners of large lottery jackpots often find themselves in worse financial shape than before their windfall.