Lottery is a type of gambling in which numbers are drawn to determine the prize. The practice of making decisions and determining fates by drawing lots has a long record (there are examples in the Bible and several Roman documents), but lottery games in which money is awarded are much more recent. Modern lotteries include military conscription, commercial promotions in which property is given away, and the selection of jurors by lottery. But a strict definition of a lottery must require payment of some consideration for a chance to win. The payment may be cash, merchandise, or services, and may not be voluntary.

The first state-sanctioned lotteries began in the Low Countries of Burgundy and Flanders in the 15th century, with towns attempting to raise money for town defenses or to aid the poor. The name lottery is probably derived from the Dutch word “lot” for fate, though it could also be a calque of Middle French loterie (to draw lots) or even the Latin term ventura (“fate”).

In colonial America, public lotteries were popular and helped finance many private and public ventures, including roads, canals, churches, and colleges. The lotteries were also a popular way to raise funds for the Continental Congress in the 1770s and for the British colonies during the war of independence, and they played a significant role in financing the American Revolutionary War.

Today, lotteries are still a major source of revenue for the states, and they have a long tradition in Europe as well. But the profits that result from these lotteries tend to expand rapidly and then level off or even decline, requiring the introduction of new games to sustain or increase revenues. Moreover, the evidence suggests that a substantial proportion of lottery players come from middle-income neighborhoods, with far fewer playing from lower-income areas.