A lottery is a game in which tokens (usually tickets) are sold for a chance to win a prize. It is a form of gambling and, in the US, is usually regulated by the state government. It is also used to raise money for public purposes, such as building roads or hospitals. There are several different types of lottery games, including the financial lottery, where participants pay a small amount for the chance to win big prizes by matching numbers. There are also sports lotteries, in which people try to win a prize by guessing the outcome of a competition. Finally, there are other lotteries, such as those for housing units and kindergarten placements, where the winners are chosen by random drawing.

The first recorded lottery was held in the Low Countries in the fifteenth century to raise funds to build walls and town fortifications. Its success prompted many other towns to organize similar events, and by the seventeenth century there were national and local lotteries in every country of Europe. In colonial America, the practice was introduced by King James I in 1612, and state-run lotteries continue to play a large role in raising money for private and public organizations.

Although the chances of winning a lottery are very low, they remain attractive to a large number of people. The purchase of tickets can be explained by decision models based on expected value maximization, as well as by risk-seeking behavior. In addition, the purchases may be motivated by a desire to experience a thrill and indulge in fantasies of becoming rich.