A lottery is an arrangement in which tokens are distributed to a group of people who have paid for the chance to win a prize. Usually, the winners are selected through a random process: by drawing lots. Modern lotteries have been used for military conscription, commercial promotions in which property is given away by a random procedure, and even the selection of jury members. Lotteries are often classified as a form of gambling because the winnings from the game depend on luck.

In the United States, people spend more than $80 billion on lottery tickets each year — more than half of which goes to pay federal and state taxes. The odds of winning are slim, but for many people, the lottery is their last, best, or only hope of getting out of a financial hole.

Most lotteries are regulated by states, and some have a separate division that manages retail outlets, sells tickets, promotes the lottery, and pays high-tier prizes. These agencies often work with other agencies to develop marketing campaigns, select and train retailers to use lottery terminals, and help them comply with laws that govern the lottery.

The word lottery is derived from the Dutch phrase lot, meaning fate or fortune, and English variants include tote, fate, and fuste. It was a popular way to raise funds in the Low Countries for town fortifications and charity in the 15th century, as described by the records of Ghent, Bruges, and other cities.