The lottery is a game of chance in which prizes are allocated to participants through a process that relies wholly on chance. The term can also be used to refer to any competition in which prizes are allocated, or a portion of them are allocated, through an arrangement that is based on chance, even if later stages involve skill, such as a sports tournament or an academic examination.

In the United States, state lotteries are monopolies whose profits benefit government programs. The first modern state lottery was established in New Hampshire in 1964. Inspired by its success, 12 more states introduced lotteries during the 1970s (Connecticut, Delaware, Illinois, Maryland, Massachusetts, Minnesota, Michigan, Montana, Ohio, Rhode Island, Vermont, and Wisconsin). Today, 37 states and the District of Columbia operate state lotteries.

Lottery play is a highly segmented activity: it varies by socioeconomic status, gender, age, race, religion, education level, and location. For example, men play more often than women and lower-income people participate at a rate significantly less than their share of the population. In addition, the lottery is more popular among high school graduates than college grads and those with less than a high school diploma.

Lottery advertising frequently misrepresents the odds of winning a prize, inflates the value of a prize (lotto jackpots are usually paid in equal annual installments over 20 years, with inflation and taxes dramatically eroding its current value), and portrays winners as happy and satisfied. Furthermore, many states require lottery winners to disclose their names, which can expose them to a variety of threats and problems, including scammers, long-lost “friends,” and media attention.