A lottery is a game of chance where numbers are drawn to win cash prizes. Though the odds of winning a cash prize are low, Americans spend billions each year on tickets. But winning a lottery can also be complicated, especially when it comes to taxes and how you’ll use the money if you win.

Lotteries have a long history in human culture, as both public and private games, ranging from the casting of lots to determine fates to modern public lotteries that award cash for a variety of purposes, including public works projects and scholarships. The lottery has long been an important source of revenue for states, and a source of controversy and debate about the nature of gambling, its social costs and benefits, and the public policies that govern it.

Despite their initial controversies, state lotteries have become remarkably popular: New Hampshire established the first modern state lottery in 1964; other states followed shortly afterward and, by the 1970s, nearly all the states had one. Throughout the evolution of state lotteries, arguments for and against them have shifted, but the overall structure of the lottery has remained remarkably similar in each case.

Lottery advertising campaigns expertly capitalize on the fear of missing out, or FOMO. They use narratives of past winners and dreamers of wealth to create aspirational appeal, and they advertise on television, radio, billboards, and online, making the potential prize seem attainable and life-changing. But despite the glitzy marketing, there are real consequences to playing the lottery, and many people don’t consider the financial implications before they buy a ticket.