A lottery is an arrangement in which tokens are distributed or sold, and a winner is selected by chance. The term derives from the Dutch noun lot, meaning fate or destiny. Lotteries have a long history in human society, with numerous examples in the Bible and ancient Rome. The modern state lottery emerged in 1964, with New Hampshire leading the way. Today, 37 states and the District of Columbia operate lotteries.

Lotteries generally begin with a monopoly established by statute or constitutional provision, and the state agency responsible for conducting them usually has a strong degree of autonomy and control over the operation. The first few years of operations typically generate dramatic growth in revenues, but after a while revenues often level off or even decline. As a result, the industry has to continually introduce new games in order to sustain and increase revenue.

Many state-sponsored lotteries have a well-defined policy regarding ticket sales. In most cases, the distribution of tickets is limited to retail stores authorized by the lottery to sell them. Those who wish to buy tickets must generally be present at the retailer and may only purchase a single ticket. In addition, the sale of tickets across national borders is typically illegal.

Lotteries have long been subject to criticisms, ranging from concerns about compulsive gambling to a perceived regressive impact on lower-income populations. However, research has found that the objective fiscal circumstances of a state have little impact on whether or not it adopts a lottery.