A lottery is a gambling game in which people buy tickets for a chance to win a prize, often a large sum of money. Lotteries are typically run by state governments and can raise funds for a variety of purposes, including education.

Many states have adopted lotteries to provide an alternative to raising taxes or cutting public programs, which may be unpopular with voters. Despite this, studies have shown that lotteries can have broad public support regardless of the state’s fiscal health. Rather, it’s the perception that lottery proceeds benefit a particular public good that garners such widespread approval.

Lottery marketing campaigns expertly capitalize on fear of missing out, or FOMO, says Adam Ortman, a consumer psychologist and president of Kinetic319. “By presenting the purchase of a ticket as a minimal investment with a potentially massive return, these campaigns reduce the perceived risk while magnifying the reward.”

The odds of winning the lottery are incredibly low, and even if you do win, it won’t be nearly as much as you might think. In fact, most states only give out about 10 percent of the money they take in. The rest is paid out as prizes, commissions to retailers, and administrative costs such as advertising.

If you decide to play the lottery, make sure you budget for it first and be aware of how your habits change. For example, you should also consider how you’ll handle requests from friends and family for money, as well as charitable organizations. If you win a large jackpot, you’ll want to discuss gifting taxation structures and your giving plan with your advisers.