A lottery is a gambling game in which tickets are sold for the chance to win a prize. It has long been a popular way to raise money for public good. Many states and the District of Columbia have lotteries. Some also have private lotteries.

The use of lotteries to determine fates and distribute property has a long record in human history, including several instances in the Bible. But the earliest known public lotteries that offered tickets for sale with prizes in the form of cash were held in the Low Countries during the 15th century, to support municipal repairs and the poor. Lottery profits were a major source of funds for the establishment of the first American colonies, and they continued to play a role in public projects in the 17th and 18th centuries.

But even when state governments rely heavily on lotteries, they do not always make good decisions about them. Many of the same problems that plague other forms of gambling — such as compulsive gambling, social impacts on lower-income groups and fiscal mismanagement — affect lotteries as well.

The answer, according to Clotfelter and Cook, is that the popularity of lotteries has little to do with a state’s actual financial condition, and more to do with the perception that proceeds are being used for a public good, such as education. Lotteries have a privileged position in the public mind because of this, and they will continue to flourish as long as they can sustain this perception.