Lottery is a form of gambling in which numbers are drawn to determine prizes. This game has a long history, and has been used in various contexts from military conscription to commercial promotions (in which property is given away by a random procedure). It can also be seen as an important part of public administration, such as determining the members of a jury by lottery. In the strict definition of the word, however, payment of a consideration is required to participate in a lottery, and this condition is generally considered a violation of state prohibitions against gambling.

Since the introduction of modern state lotteries in 1964, virtually every one has followed a familiar pattern: the state passes a law authorizing the lottery; establishes a state agency or public corporation to run it; and conducts an extensive advertising campaign. The latter is especially critical, because a successful lottery is essentially a business. The more money spent on tickets, the higher the chance of winning the jackpot. In order to maximize revenues, advertising necessarily focuses on persuading people to spend as much as possible.

As a result, lotteries are in a perpetual state of competition with each other for consumers’ dollars. This is not a problem in itself, but it raises serious issues about the legitimacy of state-sponsored gambling. The promotion of this type of gambling has been found to have negative consequences for the poor and problem gamblers, and it may also be at cross-purposes with state policy.