With the amazing features, the Ethereum network offers it is possible to make Dapps that you do not need to trust any humans but you can verify and trust an algorithm.
The Ethereum Smart Contract Lottery works in a way that when 11 players have joined the game, the contract randomly will select one of the 11 players and send the winner 10/11 of the funds while 1/11 of the funds is sent to the contract creator.
The lottery is provably fair, it runs automatically by a smart contract and results are visible in the blockchain.
This is how the lottery page looks and down in the page are shown the tx link of the winners:
Actually, there are 3 Lotteries, with a chance to win up to 1 ETH
LOTTERY #1: 1 Ticket = 0.001 ETH –> Win 0.01 ETH
LOTTERY #2: 1 Ticket = 0.01 ETH –> Win 0.1 ETH
LOTTERY #3: 1 Ticket = 0.1 ETH –> Win 1 ETH
When a round completes with 11 players the game stars again and the process repeats.
The lottery code is viewable on etherscan.
To test without real ETH the game can be played here in the ropsten network. (Not Real ETH, Ropsten Only)
The lottery winners receive 1000-10,000 BTN (Bitcoin New) tokens depending on the lottery they win. Also, free BTN tokens are awarded to the lottery players. For each lottery purchase, 200-500 BTN are awarded.
For more info about how the free tokens are awarded visit bitcoinnew.org