A lottery is a process for selecting something by chance, such as winning a prize in a drawing. It is often used to distribute things that are scarce, such as units in a subsidized housing complex or kindergarten placements. It is also used to select people for jobs, such as police officers or judges.

The first lotteries to sell tickets for prizes in cash were organized in the 15th century, according to town records from Ghent, Bruges, and other places. However, the game may be much older, since it has been found in Roman records of distribution of articles of unequal value at dinner parties.

In modern times, lotteries are run by state governments and offer a variety of games such as scratch-offs and daily lottery games in which players choose numbers. They also offer lump sum and annuity payments for winnings. The lump-sum option allows winners to invest the money immediately, while the annuity option allows them to spread out the amount over a period of time.

Some people consider playing the lottery to be a form of gambling. Others think of it as a way to raise money for a public project. In either case, the choice is based on an individual’s expected utility—the value of the entertainment or other non-monetary benefits received from the transaction versus the risk and cost of losing the money. In some cases, the disutility of a loss can be outweighed by the utility of a gain, making it a rational decision for an individual.