A lottery is a method for allocating prizes or other rewards, typically by drawing lots. Prizes may be money or goods. Lotteries are often used to raise funds for public projects, and they have a broad appeal among the general population. Modern state lotteries are regulated by governments and operate on a commercial basis, with a monopoly on the sale of tickets and a commitment to maximize revenue. Privately organized lotteries also occur.

The word is derived from the Latin lot, meaning fate or chance. It has been used for centuries as a means of distributing wealth, including land and other property; for military conscription; to select members of an assembly or jury; and to award prizes in sporting events, such as football matches. In the modern sense of the word, it refers to an arrangement in which individuals have a random chance of being selected in a group and awarded a prize.

Despite this broad popularity, many lotteries have been criticised for their regressive effects and the way they disproportionately target poorer communities. In addition, the proliferation of new games has prompted concerns that they may increase the risk of gambling problems and exacerbate existing alleged negative impacts, such as targeting poorer individuals and increasing opportunities for problem gamblers.

Nonetheless, they continue to be very popular and play an important role in raising billions of dollars each year for state programs and services. It is worth remembering, however, that people are essentially buying a ticket to have the opportunity of winning a large amount of money, which is not always enough to meet their needs.