Lottery is a form of gambling in which people can win money by drawing numbers. In the United States and Canada, governments run many lottery games. In other parts of the world, they may be run by local communities or private organizations. The winners can choose to receive the prize in a lump sum or as annual installments, often known as annuity payments. The latter option allows the winner to invest the winnings, which can grow over time. It also can help protect the winner from spending it all at once, a temptation that can lead to financial disaster.

Lotteries have long been popular in the United States, where they are used to raise money for a variety of public purposes. In the early history of the country, lotteries were widely used to fund colonial-era construction projects such as paving streets, constructing wharves, and even building churches. George Washington sponsored a lottery to pay for cannons to defend Philadelphia during the American Revolution, and Benjamin Franklin organized one to raise funds for his failing newspaper.

Today, state and local governments continue to use lotteries to raise money for a broad range of public uses. However, the popularity of these games has prompted concerns about their impact on morality and the welfare of society. They are alleged to promote addictive gambling behavior, have a disproportionately large impact on lower-income groups, and create an inherent conflict between the desire for state revenues and the responsibility to safeguard public welfare.