Lotteries are government-authorized games of chance in which participants pay a sum of money to be eligible for a prize. The prizes range from cash to goods and services. Some lotteries also support charitable projects and organizations domestically and internationally. There are several ways to play a lottery: through the mail, by phone, or online. Many state and local governments operate lotteries, while others outsource the management of their lotteries to private companies. Some states allow players to choose their own numbers while other states require them to be randomly assigned. Regardless of the method used to select the winners, the proceeds from a lottery are typically distributed by the state to charities and educational institutions.

In the United States, the state-based system of lotteries is regulated by federal and state laws. The games offered include the national Lotto, Powerball and Mega Millions; state-based lotteries such as California, Texas, New Jersey, and Pennsylvania; keno; and instant scratch cards. Instant lottery tickets, also known as scratch-off tickets, became popular in the 1970s and are now a major source of lottery revenue. In addition, some jurisdictions have implemented video lottery terminals, which are similar to slot machines but are operated by an independent company rather than the state or local authorities.

The first lotteries were created in the medieval period as a way of collecting taxes. In the 17th century they became widespread in Europe, particularly in cities where they were legal. The earliest French lotteries were run by the Paris municipality (called Loterie de L’Hotel de Ville). In the 19th century, lottery games spread throughout the world, with private ones for religious orders and public lotteries in cities like Philadelphia and London.

In Canada, there are four nationwide lotteries operated by provincial and territorial governments: Atlantic Lottery Corporation (New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador), Loto-Quebec (Quebec), Ontario Lottery and Gaming Corporation (Ontario), and Western Canada Lottery Corporation (Manitoba, Saskatchewan, Alberta, Manitoba, Yukon, Northwest Territories, and Nunavut). Lottery revenues are distributed through an interprovincial Crown entity, the Lottery Grants Board. The profits are distributed to a wide variety of community organizations including sports and arts programs.