Lottery

A competition in which numbered tickets are sold for prizes awarded at random, especially as an aid to public funds or charity. Also used figuratively to refer to any affair of chance.

The first state-sponsored lotteries are documented in Europe in the 15th century, and the word is probably a calque from Middle Dutch loterie, or from Middle English lotinge “action of drawing lots” (thus the Oxford English Dictionary). The game seems to have originated with towns seeking to raise money for such needs as town fortifications or for poor relief. Records from the early 15th century in cities such as Ghent, Bruges, and Utrecht mention lottery games for the purpose of raising funds to build walls or town fortifications.

While many people have a natural inquisitiveness about winning the lottery, it’s important to remember that it is a form of gambling. The odds of winning are slim, and many winners wind up worse off than before. That’s why it’s important to think of the money you spend on tickets as entertainment spending, and to make sure that you aren’t gambling with more than you can afford to lose. Also, if you win the jackpot, make sure to take steps to protect yourself from scammers and jealous relatives by hiring an attorney and setting up a blind trust. For more advice on personal finance and the lottery, visit NerdWallet’s Your Money page.