Lottery is the name given to the drawing of lots for various purposes, including awarding prizes. The word is derived from the Latin verb lot (to throw, roll, or drop), through Middle Dutch loterie, and in turn from a Middle High German root, probably löttö, meaning “separation by lots.” In its most common use, it refers to state-sponsored games in which tickets are sold for a chance to win a prize, usually money. Public lotteries were common in the Low Countries in the 15th century, raising funds for town fortifications and to help the poor. The Continental Congress held a lottery to raise money for the Revolutionary War. Privately organized lotteries were also popular in the US. They helped to finance Harvard, Dartmouth, Yale, King’s College, and many other American colleges, as well as to build bridges and a battery of guns for the defense of Philadelphia.

The state governments that enacted lotteries did so in order to generate revenue for public projects and services without incurring especially onerous taxes on working-class and middle-class taxpayers. They believed that it was inevitable that people would gamble, and that it was better to capture that gambling than slap high taxes on them.

Critics argue that lotteries are a disguised tax on those who can least afford it. Studies show that people with lower incomes play the lottery at disproportionate rates, and even winning the jackpot can quickly deplete their budgets. To avoid this, some winners hire attorneys to set up blind trusts, which allow them to collect their prizes while remaining anonymous and protecting their financial security.