The casting of lots for decisions and fortunes has a long history in human culture (including several instances in the Bible), but the lottery’s use for material gain is more recent. The first recorded public lotteries in the modern sense of the word were held in the cities of Flanders and Burgundy during the 15th century, with towns trying to raise money for municipal repairs and assistance to the poor.

A state government-sponsored game in which a large number of tickets are sold and a drawing is held for prizes, such as cash or goods. Typically, each ticket costs one dollar. Although the purchase of a lottery ticket is often considered to be irrational, in terms of expected value maximization, people buy them because they enjoy the entertainment and fantasy values associated with winning, or for the chance that they will improve their lives.

Most states establish their own monopolies and run their lotteries rather than licensing private firms to operate them in exchange for a cut of the profits. This allows them to avoid the need to consider whether their games are socially responsible or even profitable. But these monopolies can be problematic because, in the absence of a broader policy framework, the evolution of the lottery is piecemeal and incremental, with little consideration for the general welfare. This process often leads to a lottery that expands beyond its initial scope to maintain revenue and to attract new players.