The Collaborative International Dictionary of English v.0.48:

Lottery \Lot"ter*y\, n.; pl. Lotteries. [Lot + -ery, as in
   brewery, bindery.]
   1. A scheme for the distribution of prizes by lot or chance;
      esp., a gaming scheme in which one or more tickets bearing
      particular numbers draw prizes, and the rest of the
      tickets are blanks. Fig.: An affair of chance.
      [1913 Webster]

   Note: The laws of the United States and of most of the States
         make private lotteries illegal, except in certain
         circumstances for charitable institutions; however,
         many of the states now conduct lotteries tehmselves as
         a revenue source.
         [1913 Webster +PJC]

   2. Allotment; thing allotted. [Obs.] --Shak.
      [1913 Webster]