Which of the following describes a lottery?

The correct answer highlights that a lottery is a form of state-controlled gambling designed to generate revenue for the government. Unlike unregulated gambling activities or private fundraising events, state-run lotteries are established under specific laws and regulations that govern how they operate. Revenues from lotteries are often allocated to public services, such as education, infrastructure, or healthcare, making them a significant source of funding for various governmental functions.

Lotteries differ from strictly private initiatives, which may lack oversight and usually do not contribute directly to state budgets. Additionally, categorizing a lottery as a tax on gambling winnings would misrepresent its nature; while lotteries do require participants to spend money to play, the proceeds are not structured like a tax on winnings in traditional gaming contexts. Instead, they operate as fundraisers for the state that offer prizes based on random selection, contributing directly to public resources.