Lottery is a game of chance where participants invest a small amount of money for the opportunity to win a larger sum of money. Often associated with gambling, a lottery is also used in decision-making scenarios like sports team drafts or allocation of limited medical treatments.

The main draw of a lottery is the potential for life-changing wealth. Advertisements depict winning lottery ticket holders paying off debts, buying new cars and homes, and pursuing their dreams. These narratives make the lottery seem both attainable and life-altering, triggering FOMO (fear of missing out).

“By presenting the purchase of a lottery ticket as a minimal investment with a massive return, these campaigns reduce the perceived risk while magnifying the reward,” says Ortman. The resulting emotional appeal is powerful, and draws in many people who might otherwise ignore the lottery altogether.

Those who win the lottery must carefully manage their prize. It’s important to create a plan and stay within your budget, and to hire a financial team, including an estate planning attorney and CPA, to ensure your wealth is well protected. It’s also important to remember that lottery winnings are taxable.

In the United States, the majority of lottery proceeds go to prizes, while a smaller percentage is paid in commissions to retailers who sell tickets and toward administrative expenses and gaming contractor fees. Some states disperse lottery funds broadly, helping fund education and other state programs. If you’re interested in learning more about how each state uses their lottery revenues, this site offers a breakdown.