A type of lottery is any contest where prizes are assigned by a process that relies on chance. The most common lotteries are state-sponsored games offering cash prizes. In addition, there are other types of lotteries that award goods and services such as kindergarten placements or units in a subsidized housing complex. Some moral critics argue that the lottery is a form of regressive taxation in which lower-income citizens are forced to pay disproportionately more taxes than wealthier individuals.

In the United States, lottery operations are usually regulated by the state government. Many states have created special lottery divisions to manage the operation, including selecting and licensing retailers, training employees of those retail outlets to use lottery terminals, selling tickets, redeeming winning tickets, and assisting retailers in promoting lottery games. State-run lotteries often sell a combination of games, including scratch-off tickets and drawing-style lotteries.

The earliest known public lotteries were held during the Roman Empire, when people could buy tickets to win items such as dinnerware for their family. The first modern lotteries appeared in the Low Countries in the 15th century, when towns used them to raise money for town repairs and poor relief.

A key element of any lottery is a pool or collection of tickets or other symbols. These are thoroughly mixed before a random selection is made from the pool to determine winners. This can be done mechanically (such as by shaking or tossing the tickets), but it is increasingly being done with the help of computers, which record a bettor’s ticket information and generate random numbers. The pool is then subtracted to cover expenses, and a percentage of the total pool is typically allocated as prizes.