A lottery is an arrangement in which people buy chances to win prizes. Prizes may be money, goods, services, or other valuables. State governments typically operate lotteries, although private organizations may also run them.

A defining feature of the lottery is that the winner is chosen by chance, rather than by an election or other selection process. As a result, lottery winners may differ from one another in their preferences and tendencies to gamble. This variation is an important factor in the success of the lottery and in its popularity with people of all ages.

In the United States, state lotteries are governed by a combination of state laws and federal regulations. State laws typically authorize a lottery board to select and license retailers, train employees of those retail stores on how to use lottery terminals, and sell tickets and redeem winning tickets. A lottery division also markets the game, promotes its products, and ensures that retailers and players comply with state regulations.

Lottery supporters often argue that it is a better way for states to fund their government than through taxation, which can burden lower-income groups disproportionately. They argue that state lotteries enable states to expand their range of programs and services without having to ask citizens to pay for them, through a voluntary purchase of tickets.

While this argument has some merit, research suggests that state-sanctioned gambling is a bad idea in general. For example, it increases the risk of problems arising from compulsive gambling and leads to higher levels of poverty among those who play it.