A competition based on chance in which numbered tickets are sold for a prize, often money. Lottery is usually regulated by state law and may be run as a public or private enterprise. Historically, lotteries have been used to raise funds for a variety of private and public ventures, including roads, libraries, churches, canals, bridges, universities, and even the war effort in colonial America. Many states still sponsor lotteries to finance public projects. However, the popularity of lotteries has increased to such an extent that they are now the subject of intense debate and criticism, mainly regarding problems such as compulsive gambling and their regressive impact on lower-income groups.
In general, lotteries involve paying out a prize in accordance with a random drawing of tickets, with the winning ticket holders receiving the prize amount. Lottery games typically feature a set number of prize categories and a minimum prize amount for each drawing. The term lottery has also been applied to certain gambling activities that are not randomly drawn, such as keno and roulette. Federal statutes prohibit the mailing or transportation in interstate or foreign commerce of lottery promotions and tickets.