Lottery is a form of gambling in which people pay a small amount of money for the chance to win a much larger sum. Prizes vary from cash to goods and services to tickets to sporting events. The casting of lots to decide fates has a long record in human history, including several instances in the Bible, but public lotteries for material gain are of more recent origin. The earliest recorded lottery in Europe was organized by Augustus Caesar for municipal repairs in Rome, and the first to distribute cash prizes (rather than fancy dinnerware) was held in Bruges in 1466.

Since New Hampshire launched the modern era of state lotteries in 1964, almost every state has adopted one. Despite widespread opposition to the concept, lotteries are extraordinarily popular and have won broad public approval even in states that have no real need for additional revenue. Their popularity is largely due to their perceived value as a source of “painless” revenues—that is, revenues that do not require voters to approve tax increases or cuts in other public spending.

The actual distribution of lottery winnings varies by state, but is generally determined by each lottery’s rules. Typically, the majority of ticket sales go into the jackpot pool; the rest gets divvied up between administrative and vendor costs and toward whatever projects each state designates. The jackpot prize amounts range from a few thousand dollars to tens of millions. Players can choose to receive their winnings as a lump sum or in an annuity, with the annuity option providing for a higher total payout over time.