A competition based on chance, in which numbered tickets are sold for a prize. The winners are selected by a process involving random drawing, often with the use of computers to generate the results. Some governments outlaw lotteries, while others endorse them and organize state or national lotteries. The term also may be applied to a game of chance in which the prizes are cash or goods.
During the late 17th century, lotteries became popular in many European countries. They were a popular way to raise funds for both public and private projects, including canals, roads, colleges, churches, and libraries. In colonial America, George Washington used a lottery to finance construction of the Mountain Road in Virginia and Benjamin Franklin supported one to pay for cannons during the Revolutionary War.
The name “lottery” may come from the Dutch noun lot, meaning “fate” or “abundance,” and the English word allotment, which refers to a thing given by chance. The drawing of lots to determine ownership or other rights is mentioned in the Bible and in medieval documents.
In addition to selling tickets, most lotteries offer services for retailers that include merchandising and advertising. The New Jersey Lottery, for example, launched an Internet site during 2001 just for its retailers, giving them the opportunity to read about games and ask questions of lottery personnel online. In some states, the lottery also offers retailers demographic information that can help them improve their marketing techniques.