A lottery is a form of gambling in which numbers are drawn to win a prize. Lottery games are regulated by law in many countries. Some governments oversee their operation, while others outsource management to private firms. In either case, the rules are designed to ensure fair play and prevent fraud. Some states also prohibit the use of machines to select winning numbers, such as keno or video lottery terminals. The state of New Zealand, for example, controls its national lottery through an autonomous Crown entity, Lotto New Zealand. Its profits are distributed to charity and community organizations through the Lottery Grants Board. In the past, these funds were allocated to Sport and Recreation New Zealand, Creative New Zealand, and the New Zealand Film Commission, among other statutory bodies.

Lotteries are a popular form of recreation and have been around for centuries. In the past, people had to buy paper tickets to participate in a lottery. In the modern age, however, lottery players can play online through a variety of websites. These sites often charge a premium on the base price of a ticket. This makes lottery-style games more lucrative for the website operators.

In the United States, state-run lotteries are legal in most states, although some states have restrictions on how much a winner can receive. In addition, some states have laws governing the sale and advertising of lottery tickets. However, most states allow private businesses to sell lottery tickets. The majority of US lottery participants are in the state-run lotteries.

The earliest recorded lottery took place in China in the Yuan Dynasty (1271–1368), though it is likely that lotteries existed before that time. After the Yuan Dynasty, many different types of lotteries were created throughout Asia. These include the khuoyong (), which was an informal event held by the court, and the hongfa (). The hongfa was a lottery played between families of wealthy officials and nobles.

Another popular form of lottery is the Hongfa, which was introduced to China by foreign missionaries in 1624 and became an official event under the Qing dynasty (1644–1911). The Hongfa was similar to the modern-day hongfa, except that it was only open to members of the ruling class.

The hongfa was not without its problems, and the Chinese government banned it in 1842. Nevertheless, the Hongfa continued to be popular in the 19th century, especially in urban areas. In the early 20th century, the hongfa was revived as a government-regulated activity, and by the mid-20th century it had become an important part of the cultural fabric of China. The hongfa has since been expanded to other regions, including Singapore and Malaysia. Currently, it is one of the most popular forms of gaming in the world.