A lottery is a gambling game in which participants pay for the chance to win a prize based on random chance. Prizes can include money, goods, or services. In most countries, lottery is regulated by law. In the United States, the law defines a lottery as an arrangement in which prizes are allocated by a process that relies wholly on chance. Prizes may be awarded to a single person, to an entire class, or to several persons in a group. Lottery is different from other types of gambling because it does not involve skill or strategy.

In the past, governments have held lotteries to raise money for a variety of projects. Benjamin Franklin used a lottery to raise funds for cannons to defend Philadelphia in the American Revolution. In addition, public lotteries have raised money for the construction of many colleges, including Harvard, Dartmouth, and Yale. Privately organized lotteries also have been common as a way to sell products and properties for more money than they could be sold for in a normal sale.

Proponents of state lotteries argue that they provide a source of revenue without significantly increasing tax rates or cutting other programs. They believe that the public is willing to pay for the chance to win a substantial amount of money. However, studies have shown that the popularity of state lotteries is not necessarily related to a state’s actual fiscal situation. Instead, the popularity of lotteries depends on a state’s ability to convince the public that the proceeds will benefit a specific public good.