Lottery is a method of raising funds in which prizes are offered to participants by random selection. Some governments outlaw it, while others endorse it and organize state or national lotteries to raise money for public projects. Generally, government regulates lottery by prohibiting sales to minors and requiring vendors to be licensed.

The first recorded lotteries were in the Low Countries in the 15th century to raise money for town walls and to help the poor. These were public events in which participants paid a fee for the chance to win a prize—typically cash. Today’s modern lotteries involve selling tickets and drawing for prizes, which may include cars, houses, or sports teams. The games are usually played with numbers, although there are a number of variations, including instant-win scratch-off games.

One common way to promote the game is by partnering with popular companies or franchises, offering products as the top prize in a lottery. The lottery commission reaps merchandising revenues and the product gets exposure to a large audience. In some cases, the top prize is even a brand name—for example Harley-Davidson has teamed with New Jersey’s lotteries to offer motorcycles as prizes.

While financial lotteries are often criticized as an addictive form of gambling, the money raised is used for good causes in many communities. For instance, a lottery is sometimes run to provide units in a subsidized housing block or kindergarten placements at a reputable school, when demand is high and resources are limited.