The lottery is a form of gambling in which tickets are purchased for a chance to win money or goods. Modern lotteries are also used for military conscription, commercial promotions in which property is given away by random procedure, and jury selection. However, the main reason for governments to sponsor and operate lotteries is that they are a convenient source of tax revenue. In an anti-tax era, state governments are increasingly dependent on painless lottery revenues and face constant pressure to increase them.

Lotteries are popular with the public, and states use them to promote their own agendas. For example, they often argue that the proceeds from lotteries are spent on public goods. This argument is particularly effective in times of economic stress, when the threat of a tax increase or cuts to public programs is feared. However, studies have shown that the popularity of the lottery is not linked to the state’s actual fiscal situation.

When a lottery is introduced, the state typically legislates a monopoly for itself and establishes a government agency or corporation to run it (as opposed to licensing a private firm in return for a percentage of the profits). The agency then begins operations with a modest number of relatively simple games and, due to continual pressure for additional revenues, progressively expands its offerings.

As the lottery grows, debates about its operations and effects shift from general desirability to particular features of its operation. For example, critics focus on the potential for compulsive gambling and its regressive impact on poorer groups.