The lottery is an arrangement by which prize money, typically cash or merchandise, is allocated to individuals through a process that relies entirely on chance. Prizes may be offered for a variety of activities, including contests, games of skill, or public-works projects. The practice originated in ancient times and is recorded in several historic documents, including the Bible. It became common in Europe during the fifteenth and sixteenth centuries. Lotteries were formally introduced in the United States in 1612, when King James I established one to raise funds for Jamestown, Virginia, the first permanent British settlement in America. Other state lotteries were soon introduced, and today, all but a few American states have them.
The most basic elements of a lottery are a pool or collection of tickets or their counterfoils and some method of selecting winners. This may be a physical shuffling, such as shaking or tossing; or a randomizing procedure such as a drawing. Modern lotteries usually use computers to record the identities and amounts staked by bettors and to select winning numbers or symbols.
Because lotteries are primarily business enterprises whose profits depend on maximizing revenues, their advertising focuses on persuading targeted groups to spend their money. Critics allege that this advertising promotes gambling, and that it has negative consequences for the poor and problem gamblers. They also charge that the prizes offered by lotteries are disproportionately large, and that the lottery encourages excessive spending. This article explores these issues and other aspects of the lottery.