Lottery, a procedure for distributing something, typically money or prizes, among a number of persons by chance. The word lottery derives from the Old Testament’s instruction to take a census and divide land among the people and the Roman practice of giving away property and slaves through the casting of lots. In modern times, lotteries often require payment of a consideration (property, work, or money) for a chance to win a prize.
The first recorded public lotteries to award money prizes were in the Low Countries in the 15th century, with towns raising funds for town fortifications and to help the poor. The first to offer tickets for sale with the promise of a specific cash prize was probably a ventura, which is said to have been held in 1476 at Modena under the patronage of the House of Este.
In colonial America, lotteries financed many projects from paving streets to constructing wharves. Benjamin Franklin sponsored a lottery in 1776 to raise money for cannons for the American Revolution, and George Washington sponsored one to build a road across the Blue Ridge Mountains. Lotteries continue to be popular in the United States, where they play a significant role in public finance and provide a vital source of revenue for educational institutions.
Americans spend an estimated $80 billion on lotteries each year, even though the odds of winning are extremely small. Most experts believe that the money people spend on lotteries is better spent building emergency savings or paying off credit card debt. In addition, the taxes that must be paid on large lottery winnings can make it very difficult to sustain a lifetime of income.
