A lottery is an arrangement in which people pay a small amount of money in return for the chance to win a much larger prize. The winning numbers are selected randomly, either by a human being spinning balls with numbers on them or by using a computerized system to spit out tickets with the right combinations of digits. The winnings are then awarded to a number of people.

Lottery games have become a popular source of revenue for state governments, and they are often portrayed as a way to fund education or other public services without raising taxes. But they are a form of gambling, and the odds of winning are very low.

States run their own lotteries, with laws regulating the promotion and operation of the games and establishing prizes and expenses. The state may also determine whether winners can receive their winnings in a lump sum or in annual payments.

Most state lotteries are structured as a quasi-public agency, with a separate division within the state responsible for the lottery’s day-to-day operations. The agency oversees the selection and training of retailers, provides promotional materials to them, and collects ticket and prize claims from winners. Its employees work directly for the state and are subject to a variety of state and federal regulations.

The first modern state lottery began in New Hampshire in 1964, and others quickly followed its lead. The public reaction was largely positive, with citizens seeing the lottery as a way to improve education, veterans’ health programs, and other social safety nets without raising taxes.