Lottery is a form of gambling in which numbered tickets are drawn at random for prizes. Some governments outlaw it, while others endorse it to some extent and organize state or national lotteries. It may also refer to a system for allocating goods, people, or other resources. The word is believed to be derived from the Dutch noun lot, meaning fate. The earliest public lotteries in Europe are recorded in town records from the 15th century, when they were used to raise money for poor relief and town fortifications.

Lotteries involve paying a small sum of money for a chance to win a large prize, usually cash. The game’s origin is obscure but it probably dates back centuries, since Moses and Roman emperors were instructed to give away property and slaves by lottery. Modern lotteries are normally governed by laws passed by states, although some countries allow private companies to hold them.

There are a number of things that need to be in place for a lottery to be legal and successful. A lottery must have a pool or collection of tickets and their counterfoils from which winners are selected. The collection must be thoroughly mixed before being drawn, and it is important that the selection of winners is made by chance. This is why many lotteries use a mechanical device to randomly mix the tickets, such as a rotating wheel. Lotteries are also governed by rules regarding the frequencies and sizes of prizes, and a percentage of all ticket sales must be deducted for administration and promotional costs.