A competition based on chance, in which numbered tickets are sold for a prize, usually money. A lottery may be run by a state or by a private corporation. It is also used to describe a random allocation of something, as in the lottery system for assigning housing units or kindergarten placements.

The word “lottery” is a compound of Old French loterie (to cast lots, draw straws, or choose by numbers) and Middle Dutch lot (fate). It first appeared in English in the 16th century. Several states in the United States have state-run lotteries, and some cities have local ones. A number of other countries have national lotteries. The popularity of the lottery has increased since the mid-20th century, largely due to television and radio advertising and the proliferation of online games.

During the colonial period, lotteries were a common method of raising money for both public and private ventures. Benjamin Franklin sponsored one to raise money for cannons to defend Philadelphia against the British, and Thomas Jefferson held a private lottery in Virginia to alleviate his debts. By 1776, a lottery was operating in every one of the 13 colonies.

Lotteries generate enormous revenue, in part because jackpots often reach record-setting amounts and receive a huge windfall of free publicity in news reports. The problem, as Les Bernal, an anti-state-sponsored gambling activist, points out, is that jackpots are a powerful lure to people who don’t have much else going for them. “They’re dangling instant riches in an age of inequality,” he says.

In order for a lottery to be successful, it must have broad public support and a substantial base of regular players. To achieve that, it must make its games accessible to all sorts of different constituencies—convenience-store owners (the usual vendors for tickets); suppliers (who frequently contribute to political campaigns); teachers (in states where lottery revenues are earmarked for education); and so on.

A lottery must also ensure that its prizes are distributed fairly. It has to weed out cheaters—people who buy large numbers of tickets or play multiple games in the same day. It has to have a fair and transparent means of recording the identities of bettors and the amounts they stake. And it must be able to determine the winners quickly and accurately.

The overwhelming majority of lottery earnings go to the participating states, which have full control over how to spend them. Some invest the funds in specific programs, such as those that fund gambling addiction recovery or subsidize public housing units for seniors. Others channel the money into general funds that address budget shortfalls, roadwork, or other needs.