Lottery is an opportunity to win a prize by chance, usually a cash sum. It is also a method of raising funds for state or local government through the sale of tickets. The term lottery is derived from the Latin word lotere, meaning “to draw lots” or “to select.” A person may participate in a state-sponsored lottery to win a prize, often money, though many states allow other items as prizes as well.

The history of lotteries dates back to ancient times. Moses was instructed to take a census of Israel and distribute land and property based on the results of the drawing of lots, while Roman emperors used lotteries as an alternative form of taxation. The American colonies adopted lotteries in the early 18th century to finance such projects as paving streets and building wharves. Benjamin Franklin even sponsored a lottery to raise money for cannons to defend Philadelphia against the British, but the effort failed.

Today, most states run a state lottery. Each establishes a government agency or public corporation to run the lottery, legislates a monopoly for itself, and begins operations with a small number of relatively simple games. Over time, as the lottery becomes more popular and revenues rise, it progressively expands its offerings.

Besides commissions for the retailer and overhead for the lottery system itself, the state government reaps the biggest share of the proceeds from the ticket sales. This money is used for a variety of purposes, including education, gambling addiction initiatives, and infrastructure.