Lottery, in law and common usage, is a procedure for distributing something – usually money or prizes – among many people by chance. The distribution may take place in a contest organized by a government or a private company. Examples include a lottery for units in a subsidized housing block or kindergarten placements at a reputable public school. Some states have adopted a state-run lottery to raise tax-free money for public purposes. The lottery is often criticized as an addictive form of gambling and as having negative social consequences.
Despite its ubiquity, the lottery is still controversial. Some critics argue that it encourages problem gambling by making it easy to become addicted and by attracting low-income gamblers. Others argue that the profits from lotteries are diverted away from other public services and are used to promote gambling.
Most state lotteries are run as a business with a focus on maximizing revenues. Because of this, advertising focuses on persuading people to spend money on tickets. Some question whether it is a legitimate function of the state to promote and manage gambling.