A lottery is a process by which a prize, often money or goods, is allocated to persons through a random procedure. Lotteries are popular forms of entertainment and raise large sums of money for a variety of purposes, including public works and charities. Most state governments regulate the lottery industry and have a department responsible for licensing retailers, paying prizes to winners, and ensuring that lottery rules are followed. Some states also prohibit the mailing of lottery promotions and the sale of tickets through mail or over the phone.

A prize in the form of money is usually the primary attraction for players, but some lotteries offer goods like jewelry or cars. The word “lottery” derives from the Middle Dutch noun lot, meaning “fate, destiny.” In modern use, it is most commonly applied to a public game of chance, where payment of a consideration (such as a ticket purchase) is required for a chance to win a prize.

Lottery has a long history, dating back to ancient times. The Old Testament mentions that Moses used a lottery to distribute land among the people of Israel, and Roman emperors gave away property and slaves by lot. In modern times, state governments frequently organize and promote lotteries to raise money for a variety of purposes.

Most state lotteries are based on the sale of tickets and the awarding of prizes based on a random process. While many people consider lotteries to be gambling, most are not considered illegal under federal law, because the amount of money involved in the prize pool is very small compared to other sources of state revenue.