The lottery is a cultural and social phenomenon that raises a variety of moral, economic, and public policy concerns. Some people oppose it on religious or moral grounds, while others argue that state-sponsored lotteries promote compulsive gambling and distort the free market economy. Other critics contend that the regressive impact of lottery play hurts those least able to afford it. Regardless of the merits of these arguments, the fact is that lottery games are extremely popular, and it is no exaggeration to say that millions of people have spent billions of dollars on tickets.

The first recorded lotteries were held in the Low Countries in the 15th century to raise money for town fortifications and to help the poor. Since that time, dozens of states have introduced them, with most requiring voters to approve the measure in a referendum. Lotteries have become a major source of public funding, raising billions annually for state and local projects.

Historically, state lotteries were little more than traditional raffles. People bought tickets for a drawing that might occur weeks or even months in the future, and the prizes were usually relatively small amounts. But in the 1970s, lottery companies developed new products that reshaped the industry. They introduced scratch-off tickets, which offered lower prize amounts and more attractive odds of winning. The new games became a hit with the public, and revenues quickly grew to record levels.

Most states enact laws regulating lotteries and delegate responsibility for administering them to a special department or agency. These agencies hire and train retail employees, select and license retailers, redeem winning tickets, promote lottery games, pay high-tier prizes, and ensure that the entire operation complies with state law.