Lottery is a game or method of raising money in which tokens (usually numbers) are sold and the winners, who receive prizes, are selected by chance. a scheme for distributing prizes whose outcome depends entirely on luck:
The earliest state lotteries in colonial America were designed to fund public and private ventures, including canals, roads, libraries, churches, colleges, and military fortifications. Lotteries were also used to fund the formation of Princeton and Columbia Universities in 1740, and played an important role in financing both the French and Indian Wars.
Each state enacts laws to govern its lottery and establishes a lottery commission or board to administer it. Such entities usually delegate a number of tasks to retail lottery distributors, including training employees to operate lottery terminals; selling and redeeming tickets; and assisting retailers in promoting the games. They may also be responsible for selecting and licensing retailers; determining the eligibility of players; awarding top-tier prizes; and ensuring that lottery advertising adheres to state law.
The operation of a lottery requires considerable expertise and skill to manage. The governing authority must balance the need to generate profits with a duty to serve its constituents, and it must continually seek ways to increase revenues without resorting to regressive taxes or expanding gambling activities that might create new problems. Moreover, lotteries often become highly dependent on specific constituencies: convenience store operators (who promote the games and often sell the tickets); suppliers of lottery equipment and services (heavy contributions by such companies to state political campaigns are sometimes reported); teachers (in states where lottery revenues are earmarked for education); and legislators (who often come to depend upon “painless” lottery revenue streams). Despite these challenges, the state continues to rely heavily on lotteries to raise money for a variety of purposes.