Lottery is a form of gambling in which prize money (or other goods or services) is determined through a random drawing. Most governments outlaw it, but some regulate and organize state and national lotteries, in which a small percentage of ticket sales is used to fund public services, while the rest is distributed as prizes. The term “lottery” may also refer to other methods of awarding property or privileges, such as military conscription, commercial promotions in which the winners are determined by a random procedure, and selection of jury members.
The oldest known lotteries were probably drawn in the 14th century in the Low Countries, where town records show that people drew lots for property and fortification projects. By the end of the 15th century, the first English state lottery had been introduced. The word lottery is derived from the Dutch noun lot meaning “fate,” or more specifically, “a fateful drawing.”
Today’s state lotteries are regulated by laws enacted by legislatures and delegated to a special lottery board or commission for execution. These entities select and license retailers, train employees of those retailers to use lottery terminals, help promote the lotteries, administer high-tier prize draws, distribute winning tickets, and collect and report ticket sales and revenues. They also impose rules on retailers, players, and promoters, and ensure that both the prizes and the operations of the lotteries are in compliance with state law.
Although the establishment of lotteries is often opposed by a variety of groups, including religious and civic organizations, the public has generally embraced them. This is largely due to the fact that they are seen as a way to raise money for the benefit of a particular public good, such as education. Lotteries have also been successful at generating broad support in times of financial stress, when other revenue sources are hard to come by.
Despite these advantages, there are concerns about the social equity and economic efficiency of state lotteries. One such concern is that the poor participate in the lotteries at a rate far below their proportional share of the population. Other concerns focus on the regressive distribution of prize money, the problems associated with compulsive gamblers, and the effects on local businesses.