The lottery is a type of gambling in which people pay money for the chance to win a prize, typically money. A number of states, including the United States, conduct lotteries. Some of these lotteries offer large prizes, such as cars and houses; others have a higher percentage of smaller prizes. The chances of winning a prize in a lottery are generally very small. The prizes are usually awarded by drawing numbers or symbols. Some lotteries are operated by government agencies, while others are private. The amount of control and oversight that a state legislature exercises over a lottery agency varies from one state to the next.

Lotteries are often described as a form of gambling, but they are not considered to be gambling in the same sense that slot machines or table games are. For example, a lottery game requires a player to purchase a ticket, and there are rules that regulate how much money can be won. Lotteries can also be used to award public benefits, such as subsidized housing units or kindergarten placements.

The origins of lotteries are uncertain, but they have been in use for centuries. They are most likely a calque on Middle Dutch loterie, which was an old word for the action of drawing lots, and there is evidence that the first state-sponsored lotteries were held in the Low Countries in the 15th century. These early lotteries were designed to raise funds for town fortifications and help the poor. George Washington ran a lottery to pay for the construction of the Mountain Road, and Benjamin Franklin promoted the use of lotteries to finance roads and cannons during the Revolutionary War. Today, lotteries are a major source of income for many state and municipal governments.