Lottery is a form of gambling in which participants pay a consideration, such as money or goods, for a chance to win a prize. The casting of lots has a long history, and it has been used for a variety of purposes including determining fates, granting military conscription, selecting members of juries, and awarding commercial promotions in which property is given away through a random procedure. Many states have established state-run lotteries, and while the exact legal definition of lottery may vary from jurisdiction to jurisdiction, most modern lotteries share certain characteristics:
In most cases, the winnings are paid in the form of cash or a lump sum. The amount of the winnings is determined by the number of tickets with matching numbers. If there are multiple winners, the prize is divided equally. Typically, winnings are tax-free.
While the concept of a lottery has a long history, the first public lotteries were introduced by European governments in order to raise money for a variety of uses. Benjamin Franklin even sponsored a lottery to raise funds for cannons to defend Philadelphia against the British. Lotteries became particularly popular in America during the Revolutionary War, and Alexander Hamilton argued that citizens would be willing to hazard a trifling sum for the chance of considerable gain. The popularity of lotteries continued after the Revolution, and state legislatures often use them as a substitute for raising taxes or cutting budgets.