Lottery is an activity in which numbers are drawn to determine a prize. Lottery prizes are often in the form of goods, or sometimes cash. The drawing of lots for material gain has a long history, beginning with the distribution of gifts at the Saturnalian revelries of the Roman Empire (tickets and fancy dinnerware as the prizes). The first recorded public lottery in the West was held in 1466 in Bruges, Belgium, distributing prize money for municipal repairs.
In a state lottery, ticket sales generate prize money and other funds for public services. Lottery revenues typically expand rapidly after their introduction, and then level off or decline. To maintain or increase revenues, new games must be introduced to attract and retain players.
A lottery must be able to record and store purchased tickets and stakes. It must also be able to transmit results in a timely fashion and process applications. The lottery may be run by the state or a private company, and it must comply with the laws of the jurisdiction in which it operates.
Normally, a portion of the total prizes must be deducted for costs related to organizing and promoting the lottery. Another portion is normally set aside as revenue for the lottery operator and its sponsors. The remainder of the total prizes is available for winners. In the US, winnings are taxable unless a winner has an exemption under federal law. In addition, many states offer a winner the option to remain anonymous.