Lottery is a game in which tokens are distributed or sold, with the winning token or tokens being secretly predetermined or ultimately selected by lot in a random drawing. The prize is usually money or goods. The lottery is a form of gambling, but its rules and procedures are very different from those of casino games. In addition, the odds of winning are much higher than in traditional games.

The first modern state lotteries appeared in 15th-century Burgundy and Flanders as a way for towns to raise funds to fortify their defenses or help the poor. The name probably derived from the Dutch word lot, meaning “fate” or “destiny” and the practice of distributing property or positions by lot.

In the United States, lottery tickets are bought by 50 percent of Americans, and the player base is disproportionately lower-income, less educated, and nonwhite. About half of ticket revenue goes into the prize pool, and the rest is divvied up between vendor and administrative costs, as well as toward whatever projects each state designates.

Though critics have argued that lotteries encourage compulsive gambling and have a regressive impact on low-income people, many states remain committed to the lottery. Moreover, once a lottery is established, its defenders argue that it is difficult to abolish because the public has become accustomed to its existence and depends on the revenue it generates. Lottery advocates also point out that the criticisms of the lottery are often driven by specific features of its operations rather than a generalized concern about gambling.