a competition in which numbered tickets are sold and prizes are allocated by chance; often a state-sponsored game. The drawing of lots for decisions and for determining fates has a long record in human history (see also lottery 2). During the 15th and 16th centuries, state lotteries became common throughout Europe. They were usually based on a fixed percentage of the total receipts. Prizes might include cash or goods. The first state lottery in Britain was held in 1569 (advertisements for public subscriptions had been published two years earlier). Modern lotteries vary widely in form, but the prize is usually a large sum of money and the chances of winning are very high.
The term lottery is also applied to other arrangements that involve chance, such as a process for awarding scholarships, units in subsidized housing, or kindergarten placements. These arrangements are not normally considered to be taxes, but they have the effect of taxing some people more heavily than others.
Retailers sell lottery tickets, typically through stores or other venues that offer services such as gas, groceries, bowling alleys, and newsstands. Some retailers specialize in selling lottery tickets; for example, some have exclusive contracts with the state. During the early 21st century, some states began offering lottery games on the Internet. Lottery personnel and retailers work together to promote the games. Retailers might receive training or promotional materials from the state or might be provided with demographic data to help them optimize sales techniques.