A lottery is a competition based on chance in which numbered tickets are sold and prizes, such as cash or goods, are awarded to those with winning numbers. It is a popular method of raising funds and can be conducted by state, private, or charitable organizations. Often a percentage of ticket sales goes to costs associated with the contest, promotion, and administration of the lottery. The remaining prize money is distributed to winners.

The earliest evidence of lotteries is found in Chinese keno slips dating back to the Han Dynasty between 205 and 187 BC. Lotteries were introduced to colonial America in the 1740s, where they played a significant role in financing both private and public ventures, including roads, libraries, churches, colleges, canals, bridges, and more.

People play lotteries because they like the idea of becoming rich. However, there is more to the lottery than just this inextricable human impulse. It dangles the promise of instant riches in front of people with the potential to drastically reduce their quality of life, and it does so by targeting lower-income, less educated, nonwhite populations.

There are many different kinds of lotteries. The most common are financial, in which participants pay a small amount of money for the chance to win a large prize. These are popular with the general population and have been criticized as addictive forms of gambling, although some of the proceeds are used for good in the community. Other types of lotteries are run when there is high demand for something that is limited, such as units in a subsidized housing block or kindergarten placements at a reputable school.