Lottery is a competition based on chance, in which numbered tickets are sold for a prize. The word is derived from the Middle Dutch word loterie, or from the French verb lotere, meaning “to draw lots,” and its usage dates back centuries. Early examples of lottery activity can be found in the town records of the Low Countries in the 15th century, when they were used to raise funds for a variety of public projects. King Francis I of France introduced state-sponsored lotteries after visiting Italy, where he saw them in use.

In the United States, the colonial period saw a proliferation of lotteries, which played a key role in financing such public and private ventures as roads, libraries, churches, colleges, canals, bridges, and even military expeditions during the Revolutionary War. Benjamin Franklin held a private lottery to raise money for cannons to defend Philadelphia, and Thomas Jefferson attempted to hold one of his own to ease his crushing debts before his death.

In the modern era, states have adopted lotteries as a way to generate revenue without having to increase taxes. While this arrangement has served its purpose in an anti-tax era, it has also created problems that are difficult to resolve. For example, state lotteries have spawned the development of other forms of gambling, which often compete with and dilute the traditional revenues generated by the lottery. In addition, state officials often find themselves dependent on revenues that they can do little to control or even influence. This creates a dilemma where the goals of the lottery can become unmoored from those of the state, and it’s not uncommon for state officials to adopt policies that are ultimately self-defeating.