What is a Lottery?

Lottery is a form of gambling in which participants purchase chances to win a prize, the winners determined by chance. The prizes may be money or goods. In the United States, state governments regulate and organize lotteries. The word is derived from the Latin word lotire, meaning “to draw lots” or “fate.” Lotteries have been widely used to raise funds for public projects. The eighteenth and nineteenth centuries saw the expansion of lotteries, and famous American leaders such as Thomas Jefferson and Benjamin Franklin promoted them for financing government activities and retiring debts.

States enact laws governing the lottery, and then designate a lottery division to select and license retailers, train employees of those retailers to use the lottery terminals, sell tickets and redeem winning tickets, assist retailers in promoting their games, pay high-tier prizes and ensure that lottery rules are followed. A lottery commission may also conduct the drawing, award prizes, and publish results.

The first recorded lottery was held in the Low Countries in the 15th century, but town records show that the practice was much older. Lotteries were a popular way to raise money for a variety of town needs, including building walls and town fortifications, helping the poor, and supporting local wars.