A lottery is a game in which numbers are drawn to determine winners. Prizes may be cash or goods. Generally, lottery winners can choose between a lump sum or an annuity. A lump sum grants instant cash, while an annuity provides a steady stream of income over time. Which option you choose depends on your financial goals and applicable rules.

The casting of lots to make decisions and to determine fates has a long history, including several instances in the Bible. The earliest public lotteries to distribute prize money were held in the Low Countries in the 15th century, as a means of raising funds for town fortifications and helping the poor.

In most states, lottery revenues are earmarked for public usage, such as education and infrastructure. Lottery profits are derived from ticket sales, minus operating expenses and prizes paid. Retailers and suppliers must be licensed by state agencies, which oversee operations. In addition to regulating and licensing retailers, the lottery divisions of most states also select and train lottery terminal operators, promote lottery games, pay high-tier prizes, and collect and redeem winning tickets.

The popularity of the lottery has grown to the point that more than 60 percent of adults play at least once a year. But the industry’s advertising tactics have generated concern over its effect on poor people and problem gamblers, and whether it’s appropriate for state governments to run a gambling enterprise that relies on promoting chance.