A competition based on chance in which numbered tickets are sold and prizes given to the holders of numbers drawn at random, often sponsored by states or charities as a means of raising money. Also called lot.
The word lottery probably derives from the Middle Dutch noun lotte “fate,” from Old English lotteria and Middle English loetelij (“allotment”). Shakespeare used the term in his 1569 play The Comedy of Errors to refer to “a thing put to Lott’ry.”
In the 17th century, George Washington conducted a lottery to raise funds for the Mountain Road, and Benjamin Franklin ran one to fund the purchase of cannons for Philadelphia. These early American lotteries were criticized by Christians and other critics, who opposed them as a form of gambling that relied on luck rather than skill. But the idea caught on and was soon widely adopted in Europe and the United States.
Lottery became a popular way for state governments to raise money for an increasingly wide range of services without the need to increase taxes on the working class. It was especially popular in the Northeast, where states had larger social safety nets and where people were more tolerant of gambling.
Today, most state lotteries have a central organization that selects retailers, trains their employees to sell and redeem tickets, promotes the games, designs and prints lottery tickets, pays winning players, audits winners’ eligibility, and enforces lottery laws. Generally, about 50%-60% of the proceeds go into prize pools and the rest is split between administrative and vendor costs and toward projects designated by each state.