Lottery is a form of gambling in which people buy numbered tickets and prizes are awarded to those who have the winning numbers. It is a popular way for states and charities to raise funds. People also use the word to refer to any endeavor whose outcome depends on chance, such as choosing members of a sports team or filling an employment position.
The word lottery may have been derived from the Dutch noun lot meaning “fate,” or it may be a calque on Middle English loterie, which referred to the drawing of lots. The first state-sponsored lotteries took place in the Low Countries in the 15th century to raise money for a variety of public uses, including town fortifications and the poor. The oldest running lottery is the Staatsloterij in the Netherlands, which was founded in 1726.
In the United States, a lottery is regulated by law to ensure fairness and security for participants. The state government establishes the number of available tickets, defines the prize amounts, and oversees the distribution of the prizes. In addition, many states require a percentage of ticket sales be deposited into a reserve fund for future prize payouts.
Despite being one of the most popular forms of gambling, there are many concerns about lottery. Some people argue that lotteries promote unhealthy habits and encourage irresponsible spending. Others believe they prey on the poor, causing them to lose the income they need to support themselves and their families.
Some of the most popular lotteries include Powerball and Mega Millions. They offer large jackpots, with the top prize sometimes exceeding $1 billion. The odds of winning the lottery are slim, but people still play for the hope of striking it rich. These games feed off our innate love of gambling, and their advertising campaigns capitalize on this fact.
A common misconception is that a winner of the lottery will receive a lump sum payment. In reality, winners can choose to receive their prize in the form of an annuity. This is a series of payments that begin when the winning numbers are drawn and continue for 30 years. Winners are required to pay income taxes on the annuity, which reduces their initial lump sum payout.
These example sentences are selected automatically from various online news sources to reflect current usage of the word ‘lottery.’ Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors.
In the immediate post-World War II period, states saw lotteries as a great way to expand social safety nets without incurring particularly onerous taxes on the middle class and working class. But this arrangement began to crumble in the 1960s, and now many states find that their lotteries aren’t raising enough revenue to cover operating costs or even to pay out the advertised prizes. The remaining revenue is being spent on ever-increasing advertising, and it’s not likely that these additional expenses will be covered in the long run.