A lottery is an arrangement in which prizes are allocated by chance. This word is most often used to refer to a state-sponsored competition in which people purchase tickets for a chance to win a prize, such as money or goods. However, it can also refer to other arrangements that are based on chance, such as choosing participants for a school class.
The word probably entered English in the mid-16th century, from Middle Dutch loterij, a compound of Old Dutch lot (an element with uncertain meaning) and the verb lotte, meaning “to cast lots.” The earliest state-sponsored lotteries were probably held as early as 1569.
Many studies have found that lottery play imposes a disproportionate burden on lower-income players. They may have more to lose than those with greater incomes, and they also derive less value from dreams of wealth. These factors make it unlikely that the purchasing of lottery tickets can be justified by decision models based on expected value maximization.
The popularity of the lottery has been attributed to widening economic inequality and a new materialism that asserts anyone can get rich with sufficient effort or luck. Popular anti-tax movements have also encouraged lawmakers to seek alternative methods of raising revenue, and the lottery is an obvious choice. Lotteries have long been used to finance public works projects, including the construction of roads, libraries, colleges, churches, canals, and bridges. During the Revolutionary War, the Continental Congress relied on lotteries to fund the Colonial Army.