Lottery is a game in which people pay to try to win money or goods. It is considered a form of gambling and is legal in some countries. Many states have lotteries to raise funds for different purposes. People can also purchase tickets online. Lottery prizes vary, from small amounts of cash to vehicles and vacations. The winners are chosen by random selection. Lotteries are often controversial. Some critics say they are dishonest and unseemly, while others point out that they are an effective method of raising revenue without increasing taxes.

In the United States, state-run lotteries generate billions of dollars in revenue each year. Some states use them to help fund public projects, while others promote them as a way to reduce crime and other social problems. Some states have also used lotteries to award scholarships and other educational opportunities.

The term lottery was first recorded in the 15th century, when it was used to describe a town or city’s process of selecting lots for walls and other fortifications. The word is probably a calque on Middle Dutch loterie, which itself might be related to Old English hlot, or lot, portion, share (see hlot, and compare Old English loot).

In the 18th and nineteenth centuries, lotteries were used in the United States to raise money for both private and public ventures, including roads, canals, bridges, and churches. The lottery was particularly useful for new colonies that were still developing their banking and taxation systems. Lotteries helped finance the founding of Harvard, Dartmouth, Yale, Princeton, Columbia, and dozens of other colleges. Thomas Jefferson held a lottery to pay off his debts, and Benjamin Franklin used one to buy cannons for Philadelphia.