Lottery is a form of gambling in which a person can win money by selecting numbers at random. It is often governed by state law and administered by a government agency. Prizes can be a lump sum or paid in annual installments, with taxation depending on jurisdiction. A winner may also choose to have the proceeds transferred to an investment account to avoid future taxation.

In the United States, most state governments operate lotteries to raise revenue. They offer a variety of games including daily, weekly and instant-win scratch-off games. In addition to offering large jackpot prizes, most lottery promotions have smaller prizes for picking certain combinations of numbers.

Lotteries are generally criticized for promoting addictive gambling behavior and raising prices for consumers. They are also viewed as a major regressive tax on poorer people. In colonial America, lottery profits were used to fund a wide variety of private and public projects, including roads, canals, churches, colleges, and universities. Benjamin Franklin even used a lottery to raise funds for cannons to defend Philadelphia against the British during the American Revolution.

Despite these concerns, lottery revenues have expanded dramatically since their introduction. In the past fifty years, they have raised more than $502 billion. This seems like a lot of money, but it is only a small fraction of total state revenues. Lottery profits are mainly generated by a very narrow player base that is disproportionately lower-income, less educated, nonwhite, and male. These players are also more likely to play multiple tickets and to purchase expensive tickets.