A lottery is an organized competition in which a large number of people pay a small sum to have a chance to win a prize. The prize may be money, goods or services. A lottery has the characteristics of a game of chance, although in practice it usually involves elements of skill as well. The casting of lots to determine fate has a long history in human societies, but the use of lotteries for material gain is much more recent. It has grown rapidly since the first state lotteries were established in the United States in 1967, as a way to raise money for public projects without increasing taxes.

A major element in a lottery is the drawing, a procedure by which winning numbers or symbols are selected. Normally, the pool of tickets or their counterfoils are thoroughly mixed (shaken, tossed, etc.) to ensure that the selection process is truly random. This can be done manually or with computers. A percentage of the total pool is typically deducted for expenses and profits, leaving a smaller amount for winners.

The emergence of lotteries has been accompanied by debate about their social implications, particularly about the effects on lower-income groups. These debates often center on the question of whether state-sponsored lotteries promote gambling and, if so, whether this is an appropriate function for the government. Another issue is the extent to which lottery proceeds are distributed equitably. Data suggest that the majority of lottery players and revenues come from middle-income areas, while poor neighborhoods have disproportionately few participants.