A competition based on chance, in which numbered tickets are sold and prizes (usually money) are drawn at random. A lottery may also be a public or state lottery.

Lottery is a popular way for states to raise money and has been used since ancient times. Moses was instructed to use a lottery to take a census of Israel and distribute land among the people, and Roman emperors gave away property and slaves in this fashion. During the Revolutionary War, the Continental Congress held a lottery to raise money for the colonial army. Many states have lotteries now, and the popularity of these games has increased considerably in recent years.

The word lottery comes from the Latin phrase “sortilegij” (“casting of lots”). The practice is a form of gambling, but one that is regulated and conducted by the government or by licensed promoters, rather than being a form of illegal gambling. In addition to providing money for state operations, lotteries provide a good source of revenue for retail outlets such as gas stations and convenience stores.

Studies show that people with low incomes play a disproportionate share of the lottery. Some critics argue that this is a hidden tax on those least able to afford it. But for the vast majority of people, it is simply a fun activity that provides an opportunity to dream about winning a fortune at a cost of only a couple dollars.