Lottery is a form of gambling where multiple people purchase tickets for the chance to win a prize through a drawing. Some are run by the government and offer a chance to win huge sums of money, in some cases running into millions of dollars. Unlike other forms of gambling, a lottery isn’t about skill; it requires luck to win.

Lotteries are popular with the public because they promise a big prize for a relatively small investment. While there’s an inextricable human impulse to gamble, the problem is that lotteries are dangling the hope of instant riches in an era of inequality and limited social mobility. This creates an illusion of opportunity that skews the way many view their choices and priorities.

The earliest lottery offerings appeared in the Low Countries in the 15th century, with town records from Ghent, Utrecht and Bruges showing that lots were used to raise funds for walls, town fortifications and poor relief. These were not modern-day lottery games, however, but distributions of fancy dinnerware to guests at wealthy parties during Saturnalian festivities.

As a source of state revenue, lottery funds aren’t as transparent as a traditional tax, and consumers often aren’t aware of the implicit tax rate they’re paying. Besides the prize money, a large portion of ticket sales go to retailer commissions, operating expenses and gaming contractor fees. The remaining percentage of revenues is distributed in a variety of ways, with some states using the majority of the funding to support education.