A competition based on chance, in which numbered tickets or blanks are drawn at random to determine winners of prizes (usually money). Often used as a means of raising funds. Also called raffle, keno, or lucky dip.

The first recorded lotteries to sell tickets with a prize of money were held in the Low Countries in the 15th century to raise funds for town fortifications and to help poor people. The game has become widely used in many states, and it is now one of the world’s most popular forms of gambling.

Although lottery play is generally considered harmless, it can have serious societal implications. The most common problems related to the lottery are compulsive gambling and its regressive impact on lower-income communities. In addition, state officials often fail to establish an overall gaming policy for the lottery and thus leave it vulnerable to arbitrary, piecemeal decision making by local lottery divisions.

The most common use of lottery funds is for education, but it can be spent on other public programs as well. Typically, a large percentage of the total proceeds goes to pay out prizes, while a smaller portion goes toward the lottery administrator’s operational costs, such as paying retailers and advertising. There are some states that also keep a small percentage of the proceeds to fund gambling addiction programs. The remaining amounts are often earmarked for special projects, such as purchasing land for a new state park.