The lottery is a type of gambling where participants choose numbers in order to win a prize. The chances of winning can vary wildly, and the prize value depends on how many tickets are sold. Lottery advertising commonly presents misleading information about the odds of winning and may falsely inflate the value of money won (lotto jackpot prizes are often paid in equal annual installments over 20 years, with inflation dramatically eroding their current value). The term is also used to refer to a system by which the selection of players in sports drafts is determined by chance.
The first state lottery was established in New Hampshire in 1964, and dozens of other states followed suit. Most state lotteries are run by private corporations, but a few operate as public utilities. Generally, the process of establishing a lottery is the same in every state: a government legislatively creates a monopoly for itself; establishes a board to oversee operations; begins with a modest number of relatively simple games; and, under constant pressure to increase revenues, gradually expands the scope and complexity of its offerings.
The earliest lotteries were probably the apophoreta, a form of distribution of property (such as dinnerware) that was held during Saturnalian feasts in ancient Rome. Later, European lotteries were organized to raise funds for a wide range of public usages; and in colonial-era America, lotteries financed paving roads, wharves, and even Harvard University buildings. Today, lottery games are a common source of recreational and leisure activities.