A lottery is a process whereby a random selection from a set of individuals is used to determine the distribution of a resource, such as property or a sports team roster. This approach is often employed in situations where the resources available are limited. It is also commonly used to determine winners in a competition.

Lotteries are a popular source of public revenue in the United States. They are widely viewed as a painless way for state governments to raise money without raising taxes. They are particularly attractive in times of economic stress, when they can be presented as a means to avoid budget cuts and tax increases.

However, research has shown that the popularity of lotteries is not linked to a state’s actual fiscal health; lotteries receive broad public approval even when the state government is in good financial condition. The most obvious reason for this is that lottery revenues are seen as a benefit to the general population rather than simply to state agencies and programs.

Lotteries initially expand rapidly upon their introduction, but then begin to plateau and in some cases decline. This has led to a steady stream of innovations, most notably the introduction of new games to maintain or increase revenues. These changes have created a second wave of issues, including concerns about the impact of state lotteries on lower-income groups and problem gambling. Despite these issues, the lottery continues to enjoy widespread support.