Lottery is a form of gambling in which people buy tickets for the chance to win a prize based on random selection. The prize fund can be a fixed amount of cash or goods, or it may be a percentage of ticket receipts. Prizes can be awarded to individuals or groups, and a lottery may involve multiple winners.
In the United States, state governments run most lotteries, which are popular sources of public revenue. They are also a popular way to distribute money for charitable or civic purposes. In addition to cash prizes, many lotteries offer annuities and other payments that provide income over time. Some lottery participants sell their payments to avoid long-term taxes or to invest in assets such as real estate and stocks.
The term lottery comes from the Dutch noun lot, meaning fate or fortune. In the 16th century it became common in the Netherlands to organize state-owned lotteries that raised money for the poor and a variety of public usages. By the end of the Revolutionary War, the colonial governments had used lotteries to raise funds for all sorts of projects. Some were criticized as a form of hidden tax, although others were defended by Alexander Hamilton.
In the United States, a lottery is a game in which numbers are drawn at random to determine winnings. Unlike other games of chance, the rules and regulations for a lottery are established by the state, and the game is overseen by a government agency or commission. The state lottery typically has a division that selects and trains retail lottery employees, promotes the game to the general public, administers the drawing of winning numbers, and awards high-tier prizes.