Lottery (pronounced lot-ter-ee) is a scheme for the distribution of prizes, based on chance. It also means something whose outcome seems to depend on fate: Life is like a lottery.

In the 17th century, it was common in the Netherlands to organize lotteries as a way to raise money for a wide variety of public usages. These included schools, canals and bridges. In colonial America, they were used to finance a number of colleges and private ventures. The prize amount of a lottery is not held in a vault and handed over to the winner; it is invested in an annuity that provides a first payment when the winning ticket is sold, followed by 29 annual payments increasing by 5% per year. If the winner dies before all the payments are made, the remaining balance passes to his or her estate.

Many state-run lotteries publish detailed demand information and other statistics after the lottery is closed. These figures are important for deciding how often and in how large of a pool the prize funds will be offered, taking into account the costs involved in distributing the tickets and running the contest.

State-run lotteries are still a controversial issue in the United States, with many organizations fighting to limit their promotion of gambling, while others believe they are an important source of state revenue for education and other needs. There is no doubt that people like to gamble, and that there is a certain inextricable human impulse to take a chance on something. But it is important to remember that, in a world of growing inequality and limited social mobility, the financial lottery can be as harmful as any other kind of gambling.