A lottery is a form of gambling wherein people have the opportunity to win money or goods by chance. It is generally organized by a state or other government agency and is often associated with a game of chance, such as rolling dice or flipping a coin. Although the casting of lots for making decisions or determining fates has a long history in human culture, the modern lottery is a relatively recent invention. State governments have embraced it as a way to generate revenue without raising taxes or cutting social safety net programs, and the success of lotteries has led them to expand into new games such as video poker and keno. In addition, they have intensified their promotion through extensive advertising. The growth of the industry has raised a number of issues, including problems with compulsive gamblers and regressive effects on lower-income groups.
A state lottery is a public business, and its profits must be managed as such. Its reliance on gambling revenues can create conflicts of interest, and it is not always appropriate for the government to profit from an activity that harms others. It also raises questions about the legitimacy of a government at any level profiting from gambling activities.
States enact laws regulating the lottery, and each has its own lottery division to administer the operation. The lottery will typically hire retailers, train them to sell tickets and redeem winnings, and distribute promotional materials to attract players. It will also monitor ticket sales to ensure that retailers are complying with the law, and it will collect and process the funds paid for tickets and prizes. Some states have their own independent lottery management companies, while others contract the work out to private firms.
In the United States, state lotteries have become one of the largest sources of revenue for public education. The lottery is one of the most popular forms of gambling in the country, with many citizens playing it on a regular basis. It is estimated that the total amount of money raised by the state lotteries in 2007 was $46 billion.
The word “lottery” derives from the Dutch word lot, meaning fate or fortune. The oldest surviving lottery-related documents are keno slips from the Chinese Han dynasty (205–187 BC). Using chance to determine fates has a long history in human society, including as an alternative to divine justice, as evidenced by biblical references to casting of lots for land, slaves and other valuable possessions.
The first known lotteries to offer tickets for sale with prize money were held in the Roman Empire. They were usually held as an amusement at dinner parties, and the prizes would be fancy items like dinnerware rather than cash. The first lotteries to distribute tickets for the chance to win money were held in Europe in the 15th century, though records of lotteries in the Low Countries date back to 1445. The earliest known advertisements for these lotteries use the term “lottery”—perhaps as a calque on Middle French loterie, and perhaps an allusion to Old Dutch lotinge, “action of drawing lots”.