A lottery is a scheme for the distribution of prizes by lot or chance; esp., a gaming scheme in which tickets bearing particular numbers draw prizes and the rest are blanks.

The term lottery is also used figuratively, to mean an affair of chance. It is commonly used to refer to any game or contest that depends largely on chance for success, such as the winner of a sports competition, or the awarding of government jobs. It can be a useful tool for distributing resources among competing people, as it is possible to allocate a prize or job without unfairly favouring any one person.

In the United States, state governments often run a lottery to raise money for a variety of purposes. These can include public works projects, educational programs, or other social services. Lottery funds are usually obtained by charging a small fee for each entry. The amount of the prize may be a fixed sum or a percentage of the total pool.

When the first state lotteries were established, many voters viewed them as a way to finance public needs without raising taxes. As a result, the lottery quickly became popular throughout the Northeast and was soon adopted by other states. Over time, the lottery became a key part of many states’ budgets. By the end of the 1990s, all 50 states had lotteries. Most of the profits are distributed to winners in the form of cash or goods. A few states earmark some of the proceeds for specific public services, such as education.