Lottery is a type of chance game where participants purchase a ticket for the chance to win a prize. The prizes range from cash to goods or services. Most lotteries are run by state governments and a percentage of proceeds are used to support state projects. Historically, the proceeds from lotteries have been used to improve infrastructure and education. The idea of winning the lottery can be a dream come true for many people. However, if you’re a winner, it’s important to have a plan in place to protect your assets.
The first known lotteries were held in the Low Countries in the 15th century to raise money for town fortifications and help the poor, according to records from towns such as Ghent, Utrecht and Bruges. In the 17th century, King Francis I of France began holding national lotteries to help fund his war efforts and he also established private lotteries for charitable purposes.
When a player wins the lottery, they can choose to receive the prize in one lump sum or over time. The lump sum option is often a smaller amount than the advertised jackpot because of the time value of money and income taxes that must be paid. Those who choose the lump sum option should speak with a lawyer, an accountant and a financial planner to develop a strategy for their winnings. Some states require winners to invest a portion of their prize money, which can help them diversify and minimize tax risk.