A lottery is a process of awarding prizes to individuals or groups on the basis of chance. It is used in a variety of settings, such as granting units in a housing block, kindergarten placements or a sports team’s roster. While many people view lotteries as addictive forms of gambling, some governments use them to award scarce goods or services.

Since New Hampshire began the modern era of state lotteries in 1964, almost all states have adopted them and they have grown into large industries that rely heavily on advertising to promote their games. While public support for lotteries has remained high, their ongoing evolution has brought with it new issues.

These issues involve the question of whether a lottery is appropriate for public policy and raise issues about the societal impact of their promotion of gambling. The issue of whether lotteries are unfair to poor and problem gamblers, for example, is a central concern, and there is also a growing recognition that they may have negative consequences for society.

The earliest lottery-like games were organized in the Roman Empire, for which the prizes were usually dinnerware or other fancy items. The lottery gained popularity in colonial-era America, where it was used to finance public works projects, including roads, libraries, churches, colleges, canals and wharves. Benjamin Franklin organized a lottery to raise funds for cannons to defend Philadelphia, and George Washington sponsored one to build a road across the mountains. In both cases, the winners were given a choice of either a lump sum payment or annual installments.