1. An arrangement in which tokens are distributed or sold and the winner is chosen by lot, as in a drawing. 2. A selection made by chance, as in a lottery: A contest for units in a housing block or kindergarten placements is a type of lottery.

The lottery is a form of gambling in which people purchase tickets and then hope to win a prize, usually cash, by matching numbers. It has a long history and is still popular in many states, bringing in billions of dollars each year. But state governments must balance the benefits of this activity with the potential for negative social consequences, such as increased poverty and problem gambling. A key factor in lottery popularity appears to be that the proceeds are viewed as benefiting a specific public good, such as education. This argument is particularly effective when the state’s fiscal health is poor, but it has been found that it does not have much impact on lottery approval when the state’s finances are strong.