A lottery is an arrangement in which participants pay a small sum of money for the chance to win a larger amount of money. The prizes are allocated by a process that depends wholly on chance. The word is also used to describe any contest whose entrants must pay a fee in order to participate and whose outcome depends on chance, even if later stages of the contest require skill.

In the United States, state-sponsored lotteries are a form of gambling that is legal in some states. Lottery revenue has been a source of alternative revenue for state government since the immediate post-World War II period. State officials initially promoted lotteries as a way to expand state services without especially onerous taxes on the working class.

However, research suggests that the vast majority of lottery players are committed gamblers who spend significant percentages of their disposable income on tickets. Polling shows that the lottery is popular among lower-income respondents, although they play less frequently than those with greater resources. Some studies suggest that low-income people may be more susceptible to the temptations of the lottery because they believe it offers a way out of poverty.

Lottery advertising tries to communicate that winning is possible and the experience of buying a ticket is fun. This messaging obscures the regressivity of lottery play and leads people to take it lightly when in reality it can be a dangerous proposition. Many Americans play the lottery, and the majority of these players are poor, disproportionately low-income, and nonwhite.