A lottery is a gambling game or method of raising money in which tickets are sold and prizes are drawn by chance for various amounts of money. Some governments outlaw lotteries, while others endorse them and regulate them. Historically, people have used lotteries to distribute property and slaves. It’s also common for government agencies to use lotteries to raise money for war, colleges, and public works projects.

In the United States, you can buy lottery tickets online and in stores. You can also choose to receive your prize in a lump sum or annuity. Lump sums provide immediate access to your winnings, but can require disciplined financial management. The annuity option provides a steady stream of payments over 30 years.

You’ll probably be surprised to learn that interest rates have a big impact on lottery jackpots. When a lottery advertises a large amount, it’s actually based on annuities — how much you’d get if the total prize pool was invested in an annuity for three decades.

When you describe something as a lottery, you mean that it depends on luck or chance: Life is a lottery. You can even say that deciding which judges are assigned to a case is a lottery.