A lottery is a form of gambling in which numbers are drawn for prizes. The prizes are usually money, but may be goods, services, or even real estate. Lotteries are legal in most jurisdictions and the terms of the prize are generally described on the ticket. Federal laws prohibit the sending of lottery promotions by mail or telephone. There are also restrictions on the use of the term lottery in advertising.

The first modern lotteries are believed to have appeared in the Low Countries in the 15th century, when towns used them to raise funds for town fortifications and help the poor. Francis I of France allowed private and public lotteries to be held in several cities.

To be a true lottery, three elements must be present: payment, chance, and a prize. The payment may be cash or something else of value, such as a free ticket or merchandise. The chances of winning a prize are determined by chance, such as a drawing or matching a lucky number. Federal law prohibits the promotion of lotteries by mail or over the telephone, but state laws typically provide for these restrictions.

A lottery is a method of raising money for an organization by offering a series of prizes based on the results of a random drawing. Most lotteries offer a large main prize and a variety of smaller prizes, which are referred to as the prize pool. The prize pool is the total amount of prize money awarded, less any expenses and profits for the promoters.