The lottery is a game in which numbers are drawn at random to determine winners. Prizes may be cash or goods. Some lotteries provide a lump sum; others give the winner an annuity, paid over a period of years. Lotteries also may offer a chance to win a home, car, or other item. In the United States, state governments run the majority of lotteries. Private companies also operate lotteries.

Generally, a lottery ticket costs $1 and allows the holder to choose a group of numbers from a larger set. The winnings are determined by a drawing held once or twice a week. Some lotteries sell tickets that do not require a selection; they are often called scratch games. Many lotteries partner with sports franchises or other businesses to offer popular products as prizes. These merchandising deals benefit the companies through product exposure and advertising; the lotteries gain additional revenue by sharing the cost of advertising.

State lotteries raise billions of dollars for states and local communities. In addition to providing revenue for general government services, they are an important source of education funding. Lottery profits are distributed in various ways, with some states using a large percentage of their lottery funds for public education. The majority of state budgets do not contain any taxes, so the money from the lottery is a vital supplement to other forms of government revenue. Many people play the lottery because they enjoy gambling. In addition, a large number of people feel it is their civic duty to participate in a lottery because it benefits the state.