A lottery is a gambling game in which people pay money for the chance to win a prize, such as cash or goods. The prize value depends on how many tickets are sold and the rules of the lottery. The first known lotteries were held in the Low Countries in the 15th century for public works and to help the poor. In modern times, lotteries are used to raise money for state government programs.

The practice of making decisions and determining fates by the casting of lots has a long history dating back to ancient times, with many examples in the Bible. In the 19th century, states began to introduce lotteries as a source of “painless” revenue — that is, as a way for the wealthy to voluntarily contribute to public programs without paying taxes.

This has produced a second set of problems. People feel compelled to play the lottery, even when they know that the odds are long against them. And there is evidence that the behavior of winning can be irrational and addictive.

Those who are rational players buy tickets when the expected utility of the entertainment and non-monetary benefits of playing outweighs the disutility of losing. But there is a third possibility: The long-shot winner may feel that the prize is so important that it justifies an unprofitable investment. This is how the lottery has been able to attract millions of Americans. And it is why the regressive nature of lottery proceeds is hidden behind a veneer of fanciful games and glitzy advertising.