Lottery is a type of gambling in which people pay a small amount of money for the chance to win a prize, usually cash. The prizes vary based on the number of tickets sold and how many numbers match those drawn. Lotteries have a long history, with some of the first examples being keno slips in the Han Dynasty between 205 and 187 BC. Modern lotteries are used to raise funds for a variety of purposes. For example, a lottery may be used to award housing units in a subsidized apartment complex or kindergarten placements at a public school.

Financial lotteries are especially popular. Players buy a ticket, typically for only $1, and then select a group of numbers that are randomly selected. The more numbers match those drawn, the bigger the prize. These games have been criticized as addictive and unfair, but often the proceeds are used for good causes in the community.

In some countries, including the United States, winners can choose whether to receive their winnings in one lump sum or in annuity payments over time. In the latter case, the amount paid out at any given time is likely to be less than the advertised jackpot, as income taxes and withholdings are taken out. Nonetheless, some winnings are quite large and can transform lives in unexpected ways.