Lottery
A lottery is a scheme for raising money by selling chances to share in a distribution of prizes. These may be numbered slips or lots, representing prizes or blanks, which are drawn from a wheel on a day previously announced in connection with the scheme.
Often, the pool of money used to support the lottery is split between several smaller prizes, with the largest prize awarded to one winner. Typically, the number and value of prizes are predetermined by the promoter and the profits for the promoter are determined by the number of tickets sold.
State and national lottery sales generated more than $100 billion in ticket sales in the United States in 2006. Many of these dollars go to programs that are not available to non-lottery players, such as health care services, free transportation and rent rebates for senior citizens.
The word lottery is derived from the notion of auction lots, which were placed in a receptacle and shaken. The person whose name or mark was on the first lot to fall out won the prize.
It is often confused with bingo, which is a game of chance that has been around since the late 18th century. However, it is distinguished by its lack of a fixed amount of money for each player.
Another important distinction is that the lottery does not pay winnings out in a lump sum. Instead, the winner receives a series of payments over a period of time (e.g., monthly). The total amount of these payments may be less than the advertised jackpot because of tax withholdings that are deducted from the money won.