Lottery is a form of gambling in which numbers are drawn for prizes. Many states and the District of Columbia have a lottery or multiple lotteries, and there are also private societies that run their own. The word is derived from the Latin sortilegia, which means casting of lots. People have used lots for centuries—in the Old Testament, Moses was instructed to divide land by lottery, and Roman emperors gave away slaves and property by lottery. Lotteries are also common in the United Kingdom, where there are laws requiring companies running them to be licensed.

In the United States, lotteries are legal and regulated by state governments, with prizes typically paid out of the money raised from ticket sales. The size of the prize is often predetermined, and profits for the promoter and cost of promotion are deducted from the total pool. Historically, lotteries have been popular with the general public and played a role in financing a variety of private and public ventures. In colonial America, for example, lotteries helped finance roads, canals, libraries, churches, and colleges.

Despite their initial popularity, modern lotteries are controversial for several reasons. For one, the large prize amount can attract fraudsters. Moreover, the fact that most people do not win the big prize can lead to feelings of injustice. In addition, a lot of people use the lottery as a substitute for saving and investing, which can have a negative impact on their financial stability.