A lottery is a form of gambling in which numbers are drawn to select winners. It is a popular way to raise money for public services and to fund private projects. Many states have state lotteries. Others organize national or multistate lotteries. In addition to the cash prizes, some lotteries offer merchandise or travel vouchers. Many people play a lottery in hopes of winning the big jackpot. But the odds of winning are very low. The term “lottery” is also used to describe any contest that relies on chance, such as finding true love or being struck by lightning.

The term derives from Italian lotto, which was adopted into English in the mid-sixteenth century. It reflects the fact that the entrants are literally playing for their “lot,” or portion, of the prize. While this etymology does not rank among the most surprising, it is nonetheless intriguing.

In the United States, state-sponsored lotteries are a significant source of revenue. In 2002, the thirty-nine states and the District of Columbia reaped more than $42 billion from lottery sales, and supporters claim that it is an easy way to raise funds without raising taxes. However, the amount of money that is generated by state lotteries is relatively small in the context of overall state revenue.

During the American Revolution, lotteries helped fund private and public ventures, including roads, canals, churches, and colleges. Many of the colonists also participated in private lotteries, which raised a substantial amount of money. Some of these ventures were not successful, but the majority did well.