A lottery is a scheme for the distribution of prizes by chance. It is often used as a way of raising money for state governments or charities. People pay a small amount of money for tickets with numbers on them, and the more number matches those randomly drawn by machines, the higher the prize. The earliest recorded lotteries to award cash prizes are found in the town records of Ghent, Utrecht and Bruges, in the 15th century, although making decisions or determining fates by drawing lots has a much longer history.
In some countries, a lottery is one of the primary methods for allocating social benefits, such as school places or housing units. Other lotteries provide funds for sports events or public works projects. In these cases, the money from ticket sales is normally distributed after a deduction for administrative costs and a profit to the organizers.
Lotteries are often criticised for their dependence on chance and lack of skill, but these concerns are partly a result of the way that policy is made. Decisions about whether or not to hold a lottery are generally made at the local level, with politicians often viewing it as an easy source of tax revenue without the need to consult voters. As a result, the evolution of a lottery is often driven by its own market forces, with new games introduced to maintain or increase revenues. It is also typical for these revenues to expand dramatically when first introduced, then to decline as they become “boring” for players.