A lottery is a game of chance operated by a state government in which people pay a nominal fee to have the opportunity to win a prize, usually cash. Most states sponsor lotteries and use their profits to fund various state programs.

A modern state-sponsored lottery may consist of a single drawing for a large prize and a series of smaller prizes, arranged in decreasing order of value. Usually, only the top prize is guaranteed. In the United States, state lotteries are regulated by law and the proceeds are used to benefit public services. In addition, many private companies promote and run lotteries.

The practice of distributing property or other goods by lottery dates back millennia. Moses was instructed to divide the land of Israel by lottery and Roman emperors gave away slaves through lotteries held during Saturnalian feasts and entertainments. In the seventeenth century, Francis I introduced a French lottery after visiting Italy. Lotteries became widespread in the United States after the Revolution; famous American leaders such as Thomas Jefferson and Benjamin Franklin advocated them.

Most winners choose to receive their winnings in a lump sum, which allows them immediate access to their money and can make it easier to invest or clear debts. However, it can be difficult to maintain a steady income with this arrangement and some experts recommend consulting financial professionals. Others prefer to take an annuity, which allows them to withdraw a small percentage of their winnings each year for the rest of their lives.