A lottery is a form of gambling that gives people the chance to win a prize, usually money. Most lotteries are regulated by governments. They are a popular way to raise funds for public projects such as roads, canals, and bridges. In addition, they can be used to finance schools, churches, hospitals, and other public works.

The word “lottery” probably comes from the Dutch noun lijm (“fate”), and the verb tolen (“drawing lots”). It may also come from the Middle Dutch word loterie (“action of drawing lots”) or, more likely, from Old English lttere “lot, fate” or, again more likely, from the French noun lotte “fate, fortune.” Lotteries have been around for centuries. The earliest recorded use of the term was a keno slip from the Chinese Han dynasty (205–187 BC).

In modern times, states typically delegate the responsibility for running a lottery to a dedicated state agency, which oversees retail licensing and distribution, trains workers at convenience stores to sell tickets, redeem winnings, select and train lottery retailers, promote the lottery to consumers, pay high-tier prizes, and ensure that all participating retailers and players comply with lottery laws.

Lotteries are controversial because they involve a type of taxation that, like all taxes, tends to fall disproportionately on those who can least afford it. In addition, critics contend that advertising is at cross-purposes with the lottery’s primary function as a means of raising revenue, as it encourages gamblers to spend more than they can afford in search of an illusory hope for riches.