A lottery is a form of gambling in which people pay money and receive prizes based on the drawing of lots. The practice dates back to ancient times; examples include the drawing of names from a hat to determine ownership of land, or of numbered tickets that are collected and then randomly spit out by machines in order to determine the winners of a sports contest or public-works project. Lotteries are most common in the United States, where they are a major source of state revenue. The most common types of lottery games are scratch-off games and daily games in which players pick numbers. Many states team up with brands such as restaurants and sports franchises to provide popular products as prizes.

Some states allow retailers to purchase multiple copies of the same game, and some offer multiple games in the same ticket. Retailers are encouraged to advertise the lottery and its prizes, and many state lottery officials work closely with retailers to ensure merchandising is effective. Many, but not all, lotteries publish statistics on sales after the lottery closes, including details of how each type of ticket is sold.

The majority of the 186,000 retailers licensed to sell lottery tickets in the United States are convenience stores. However, other outlets include supermarkets, food stores, drugstores, service stations, restaurants and bars, and fraternal organizations. In addition, some states sell lottery tickets online. Lottery promotions often stress the benefits of state revenue, but they rarely put these benefits in context of overall state budgets and societal costs.