Lottery is a form of gambling that involves drawing lots to determine the winner of a prize, typically cash. It is also a popular method of raising funds for a variety of public projects. Lotteries are governed by law and can be conducted by private entities or governments. They can be run with a fixed prize amount, or as percentages of total receipts (as in the Dutch state-owned Staatsloterij). The prizes may be awarded to individuals or groups, and the winnings are often distributed over time in the form of payments.

The biblical Old Testament has a few examples of casting lots for decision making, but generally does not promote gambling. The modern sense of lottery dates from the 15th century, when towns in Burgundy and Flanders used them to raise money for town fortifications or aid to the poor. Lotteries came to the United States with colonial settlers, who established private and public lotteries for many purposes, including establishing a militia to fight the French. The Continental Congress even established a lottery to fund the Revolutionary War. Privately organized lotteries continued to be a common method of funding in the colonies, and helped build Harvard, Dartmouth, Columbia, Yale, King’s College, Union, Brown, and other American colleges.

Although the odds of winning a lottery are low, people still gamble on them in large numbers. The average American spends over $80 billion on lotteries each year. That money could be better spent on emergency savings, paying down debt, or putting toward retirement.