A lottery is an arrangement in which prizes are allocated to persons by a process which depends wholly on chance. This is what distinguishes it from a prize competition in which the allocation of the prizes depends on a combination of skill, effort and luck.

The casting of lots for determining fates and properties has a long record in human history, with several instances recorded in the Bible. The earliest known public lotteries in Europe were held during the Roman Empire to distribute property and slaves as prizes for Saturnalian feasts and other entertainments. The first lottery to offer tickets and prizes in the form of money was organized by Augustus Caesar for municipal repairs in Rome. Other early lotteries were for the distribution of merchandise and artifacts.

Lottery commissions have moved away from the message that lottery is a game and are now using two messages to promote the lotteries:

One is that the lottery is a fun and exciting way to spend a little time and a small percentage of your income. They are also promoting the idea that you can win big. But the reality is that the odds are very, very long and that most lottery winners end up bankrupt in a few years or at best struggle to maintain their standard of living while paying off the enormous tax bill that will be due on their winnings. The other message is that the proceeds of the lottery benefit a specific public good, usually education. But studies show that this argument does not play well when state government budgets are in crisis, as they often are.