A lottery is a form of gambling in which players pay a small amount for a chance to win a prize. The prize may be cash or goods. Federal law prohibits the sale of lotteries by mail and over the telephone. The word “lottery” is thought to have originated in the Middle Dutch word lotterie, which in turn may be a calque on Middle French loterie “action of drawing lots.”
In general, state governments regulate the operation of lotteries. Many states have a special lottery division that selects and licenses retailers, trains employees of retailers to use terminals, sell tickets, redeem winning tickets, promote lotteries to the public, pay high-tier prizes, and ensures that all state and federal laws governing lotteries are observed. These divisions also pay commissions to retailers and collect a share of proceeds from ticket sales.
Although a few people win large jackpots, most lottery players do not. Statistically, the poorest members of society make up the largest percentage of lottery participants. As a result, critics have charged that lotteries are simply a disguised tax on the disadvantaged.
Some states offer lotteries for a variety of items, including housing units in subsidized apartments and kindergarten placements at reputable schools. Other lotteries have partnered with major companies to offer merchandising deals, such as the Harley-Davidson motorcycle prize in the New Jersey Lottery’s scratch-off game “Harley & You.” These promotions increase the expected value of lottery tickets and attract new players.