Lottery is an arrangement for awarding prizes, usually money, by chance to those buying tickets. Prizes may also be goods or services. Typically, a large amount of money is offered, along with several smaller prizes. A lottery may be organized by a government or by private enterprise, such as a corporation or a foundation.

In the Middle Ages, people sometimes drew lots to determine property divisions or other matters of controversy. The practice was widespread in the Roman Empire, where lottery games were popular as a form of entertainment at dinner parties and during Saturnalian revelries. Guests would receive tickets and, at the end of the party, the host would draw lots for gifts to be taken home. The prizes were generally of unequal value.

The modern term lottery probably derives from the Latin verb lotta, meaning “lot, share, portion.” In a lottery, an object (usually a piece of paper with markings) is placed with others in a receptacle and shaken; the winner is the one whose name or mark appears first. Lotteries are often used to raise money for public works projects and other purposes.

In the United States, about half of adults play a lottery every year. The popularity of lotteries has grown since state governments began offering them in the immediate post-World War II period, when they were seen as a way to finance social safety net programs without placing excessive burdens on working and middle class families. The popularity of lotteries among low-income and minority households has been particularly striking, as many of these groups have limited discretionary spending.