Lottery is a form of gambling in which participants purchase tickets, usually for a small amount of money, and hope to win a prize. Prizes range from cash to goods and services. It is a common source of revenue for state governments. It is also a popular form of entertainment for the general public, albeit one that has been criticized for its addictiveness and potential to impoverish people.

The use of lottery to determine fates and distribute property dates back centuries. In the Old Testament, Moses was instructed to divide land by lot; Roman emperors used the same method to give away slaves and property at Saturnalian feasts. In modern times, the lottery has developed into a widespread activity with several varieties of games and prizes.

When the lottery was first introduced in America, it was a popular way to raise money for municipal and charitable projects. It helped fund the settlement of Virginia and financed such colonial enterprises as paving streets, building wharves, and planting churches. In the 18th century, the lottery was used to finance buildings at Harvard, Yale, King’s College (now Columbia), and many other universities. George Washington even sponsored a lottery in 1768 to finance the construction of a road across the Blue Ridge Mountains.

In a lottery, winnings are paid out according to the number and value of tickets purchased. The total value of a prize, however, may be less than the advertised jackpot if prizes are offered in installments or if income taxes are withheld from winnings.