Lottery is a game in which numbered tickets are drawn at random for prizes. Historically, it is associated with gambling, but it is used in other decision-making scenarios as well, such as sports team drafts and the allocation of limited medical treatments. The name “lottery” is derived from the Middle Dutch word lot, meaning fate or luck.

People like to play the lottery because they think it’s a way to change their fortune. And it’s true, there is a chance for life-altering wealth—though the odds are long. In fact, only about 2% of those who play the lottery actually win. But the marketing campaigns of the big national and state lotteries make a compelling case that someone has to win—they capitalize on fear of missing out, or FOMO.

The majority of lottery proceeds go to prizes, with a small portion of the money going toward various administrative and vendor costs and to state projects. These projects can vary greatly, but in many cases, lottery funds go to education along with other state-designated priorities, including health and human services, environmental conservation, business development, and local governments.

If you do happen to win, be sure to hire a financial team, including a tax lawyer, an estate planner, and a certified public accountant. Also, don’t be too quick to spend the money; it’s best to invest it over time. This will help you avoid unnecessary taxes and protect your assets in the long run.