Lottery is a method of distributing something, often money or prizes, among a group of people by chance. The term is also used to refer to a game of chance in which people place bets on the outcome of an event, such as a sporting contest or a drawing. Lotteries are regulated by law in some countries and are considered legal forms of gambling.

Lotteries are popular in the United States, where they raise more than $50 billion per year. But critics argue that the prizes and tax revenue generated by these games don’t make up for the harm they cause to low-income and minority communities.

The first European lotteries were held in the 15th century. Francis I of France introduced them to help towns raise money for military defense and the poor. These early lotteries were often held by public officials or the church and awarded cash or goods for a random draw of numbers or symbols.

Modern state-run lotteries have developed around this basic model. In the US, there are 48 state lotteries and two federally authorized multi-state games that offer larger jackpots and a wider geographic reach.

Lottery proceeds have helped build the New York City hall and a number of other city buildings, as well as roads, canals, and ferries across the country. But they have also caused hardship for lower-income households, which spend a disproportionate amount of their income on tickets, according to a study by the Howard Center.