A lottery is a form of gambling run by state governments. Prizes can be cash, goods or services. Many states have lotteries, as do some cities and countries. Some people have claimed that lottery play is addictive and can lead to serious problems for the winners. There is also criticism of the regressive effect of lottery prizes on lower-income communities.

The name “lottery” derives from the Dutch word for fate or chance, and the first recorded lotteries were in the Low Countries in the 15th century, where towns held public lotteries to raise money for town fortifications and to help the poor. They were popular, attracting large crowds and press coverage. They were hailed as a painless alternative to taxes.

In the United States, state-run lotteries are common and account for a significant share of state revenues. They offer a range of games, from scratch-off tickets to daily number games, each with its own rules and odds of winning. Typically, the prize money from a lottery game is split between administrative and vendor costs and toward projects that the state designates. The top prize money is usually given out in an annuity, with the winner receiving a first payment upon winning followed by 29 annual payments that increase by 5%. If the winner dies before all 29 payments are made, the balance goes to the estate.

Lottery advertising focuses on the big jackpots and the possibility of instant wealth. It plays on the public’s desire for a fast-track to wealth, which can be heightened by the belief that we live in a meritocratic society and that luck favors the diligent. It’s important to note that the chances of winning a lottery are slim, even with the massive jackpots. In fact, there’s a better chance of being struck by lightning than becoming a billionaire.

There are other, more insidious ways that lottery advertising hurts the population. The biggest is dangling the prospect of instant riches in an era of inequality and limited social mobility. Lottery billboards imply that it’s possible to skip the middle class and make it to the top in one fell swoop, encouraging compulsive gamblers to keep buying tickets.

The biggest source of lottery revenue comes from scratch-off games, which are relatively regressive—they’re bought mostly by poor people. But a substantial portion of lottery money comes from the upper-middle-class players who buy Powerball and Mega Millions tickets. That’s less regressive, but it still puts a disproportionate burden on those at the bottom of the income distribution. The very poor don’t have the discretionary income to spend on a lot of lottery tickets, so they can’t improve their lives significantly by winning. The 21st through 60th percentiles can afford a few dollars of lottery tickets, but they’re not going to get rich by doing so.