A lottery is an arrangement for the awarding of prizes by chance to persons who buy tickets. Usually, the winners are those whose ticket numbers match the ones drawn. The prize amounts vary with the type of lottery and the number of tickets sold. In some cases, the prize is a fixed amount of cash or goods; in others, the prizes are awarded based on a percentage of the total receipts. The first of these arrangements is commonly known as a simple lottery, while the latter is usually called a complex lottery.

Lotteries are popular with the public and often raise large sums of money for a wide variety of purposes. They are also a form of gambling and may be addictive. They have a particular appeal as a source of funding for charitable and civic enterprises because they provide an opportunity for individuals to contribute to public usages without the burden of direct taxation.

The lottery was widely used in colonial America, particularly in the 1740s. It helped finance roads, canals, bridges, libraries, churches, colleges, and other private and public ventures. The Continental Congress voted to hold a lottery to raise funds for the Revolutionary War, but the plan was abandoned.

In modern lottery operations, computer systems record the identities of bettors and the amounts staked. Some states have separate lottery divisions that select and license retailers, train employees at retail outlets to operate lottery terminals, redeem winning tickets, pay high-tier prizes, and enforce state laws and regulations.