A lottery is an arrangement in which prizes are allocated to a number of people by a process that depends wholly on chance. The prizes may consist of money, goods, or services. A lottery is usually conducted by a state or an independent organization and is subject to laws and regulations in the jurisdiction where it is held. Most states have a lottery division within its public service department. Its responsibilities include selecting and licensing retailers, training them to use lottery terminals, selling tickets, redeeming winning tickets, paying high-tier prizes, and assisting retailers in promoting the lottery.

In its modern sense, the word lottery was derived from the Dutch noun lot, which means fate or fortune. Historically, European lottery games were organized for a wide range of purposes, from helping the poor to supplying guns for defense. The first European lottery to award cash prizes was the ventura, held in Modena in 1476 and operated by the house of Este. Lotteries grew popular in the 17th century and were often hailed as a painless form of taxation.

It is important to remember when examining lottery advertisements that the prizes are likely to be much lower than the amount of money paid in by those who play the game. This is why governments guard the operation of lotteries so jealously. They know that if it were left in private hands, many would take advantage of the opportunity to strike it rich for a very low risk.