Lottery is a form of gambling in which people pay a fixed amount of money for a chance to win a prize. It is common in North America, where state governments operate lotteries and people spend $78 billion on tickets each year. It is also popular in Canada and throughout much of the world, where government-run lotteries are found on every continent except Antarctica.

Although the casting of lots has a long history in human affairs, a lottery in which prizes are offered is relatively recent, beginning with the 1820s and extending to the 1970s when innovations changed the industry. During this time, many states introduced new games with lower prizes and higher odds of winning, such as scratch-off tickets, which are played for pocket change.

State governments use lottery proceeds for a variety of programs, including support for senior citizens and veterans, environmental protection, construction projects, and tax relief. In some cases the money is combined with other state and local revenues in a general fund, while in others the proceeds are dedicated to specific causes.

While public opinion on the overall desirability of lotteries is generally positive, there is ongoing debate about particular aspects of their operation, such as their promotion of gambling and alleged regressive effect on poorer individuals. These criticisms are partly a result of the inherent ambiguity in lotteries, which are run as businesses with a mandate to maximize profits. This approach may lead to negative consequences for problem gamblers and other groups.