A lottery is a gambling game in which a large number of tickets are sold for the chance to win a prize. Lotteries are regulated by governments and are often popular with the public. They can be an effective way to raise funds for a variety of purposes. They are also an alternative to higher-taxed forms of taxation. They have a long history and are found in most states, including the United States. The word lottery comes from the Dutch noun lot, meaning fate. In the 17th century, it was common in the Netherlands to organize lotteries for a variety of uses. The oldest running lottery in the world is the Staatsloterij in Amsterdam, which was established in 1726.

People purchase lottery tickets in a variety of ways, including the belief that they have a better than average chance of winning, or because they enjoy the entertainment value. Regardless of the reasons, purchasing lottery tickets is not rational according to decision models based on expected value maximization. However, if non-monetary value and fantasy are considered in the utility function, lottery purchases may be deemed rational.

In the US, most state-licensed lotteries have specific rules and regulations for players. Retailers are usually required to register with the lottery before selling tickets. In addition, they are typically responsible for training employees to use lottery terminals and sell tickets. Moreover, they must ensure that the lottery is being conducted in accordance with state law and rules. The lottery divisions are also responsible for selecting retailers, promoting the games and paying high-tier prizes to players.