Lottery is a popular form of gambling that provides a chance to win cash or other prizes by drawing random numbers. The term may also refer to a process used to allocate limited resources, such as units in a subsidized housing complex or kindergarten placements at a public school. Lotteries are controversial because they are perceived to be addictive and contribute to the growth of gambling addiction, but they can also benefit society by funding social programs.

When state governments decide to adopt a lottery, they often argue that its proceeds will be directed toward a specific public good, such as education. But the evidence suggests that this claim is not persuasive. Lottery revenues tend to be redirected to a variety of purposes, and the funds are not necessarily spent on the intended purpose. For example, a significant percentage of lottery proceeds are paid out as commissions to convenience store vendors and to lottery administrators. Moreover, many of these entities use a portion of the proceeds to advertise and promote their games, which is likely not to the public’s benefit.

Further, data suggest that the lottery is not especially effective in generating revenue for education. Rather, the popularity of the lottery is closely tied to its broader public image as a way to avoid tax increases or cuts in government spending. This message is particularly effective when it is marketed as a “good” alternative to illegal gambling. It is not, however, a persuasive argument in times of fiscal stress.