Old English hlot "object (anything from dice to straw, but often a chip of wood with a name inscribed on it) used to determine someone's share," also "what falls to a person by lot," from Proto-Germanic *khlutom (cf. Old Norse hlutr "lot, share," Old Frisian hlot "lot," Old Saxon hlot, Middle Dutch, Dutch lot, Old High German hluz "share of land," German Los; Old English hleotan "to cast lots, to foretell"), of unknown origin.
The object was placed with others in a receptacle, which was shaken, the winner being the one that fell out first. Hence, to cast lots. In some cases the lots were drawn by hand. The word was adopted from Germanic into the Romanic languages (cf. lottery, lotto). Meaning "choice resulting from the casting of lots" first attested c.1200.