A lottery is an event wherein people have the opportunity to win a prize by chance. The prize could be money or other valuable goods and services. Federal law prohibits the sale of tickets over the internet or by mail, and states enact laws regulating the operation of lotteries. State lotteries generally delegate a special lottery division to administer the lottery, including selecting and licensing retailers and their employees, promoting the games, providing training for retail personnel and players on how to use ticket terminals, paying winning players, and certifying that all activities comply with lottery rules.

Critics argue that a large portion of lottery advertising is misleading and encourages irresponsible behavior. For example, they charge that the lottery portrays a rosy image of gambling (in reality, it is largely a form of taxation on poor and working class families), encourages irrational spending, and undermines healthy financial habits such as budgeting.

But supporters argue that lotteries are a necessary part of a modern society, in which the costs of running a state have grown exponentially. They also claim that the lottery is a good alternative to increasing taxes on working families, and that lotteries are a legitimate source of revenue for states without onerous burdens on the middle class.