What is a Lottery?


Lottery is a scheme for the distribution of prizes by chance. The tickets bearing numbers or symbols are numbered, and the prize is awarded to the ticket holder whose number or symbol appears first in a drawing. The word is a contraction of the phrase sortilege, and it also means “casting lots”. In ancient times, property was often divided by lot: the Old Testament gives many examples. Roman emperors used lotteries to give away slaves and property during Saturnalian feasts and other entertainments.

In colonial America, lotteries were widely used to raise money for private and public projects. They played a significant role in the financing of roads, libraries, schools, colleges, canals, and bridges. They also financed many militia units. In the 1740s, Princeton and Columbia universities were founded with lottery proceeds. During the Revolutionary War, several states organized lotteries to support their armies. Alexander Hamilton wrote that the Continental Congress should be careful to keep the lottery simple, and not use it as a substitute for taxes.

Today, lottery games are played worldwide. They vary in type and scale, but they all have the same basic features: a drawing for prizes from a pool of money, usually derived from sales of lottery tickets, with profits for the promoter and costs of promotion deducted from the total pool. Typically, there is one large prize along with many smaller prizes. In some countries, winnings are paid out in a lump sum and others in an annuity payment. Winnings in the United States are subject to income tax, which reduces their real value, especially when the jackpot is huge.