America’s lottery players are spending billions of dollars on tickets each year—money that could be going toward saving for retirement or paying off credit card debt. But where does this money go, and does it actually help people? Profitable lottery is more than just a game: it’s a way for states to get cash without raising taxes or cutting services, both of which are extremely unpopular with voters.

Lottery proceeds come from a percentage of every ticket sold, and are usually distributed evenly amongst participating states. Some of this revenue is earmarked for education, while others are used for advertising and other costs associated with running the lottery. However, many states also take advantage of the opportunity to give back to their constituents by offering college scholarships through the lottery.

While state government revenues from lotteries are growing, they still represent a small fraction of state budgets. For most, this means that other needs must be met, such as public schools or police departments. In the case of New York, where lottery proceeds are high, the revenue is a substantial part of the state’s education aid to local school districts.

For some, purchasing lottery tickets is seen as an low-risk investment that offers a chance to win millions of dollars—but it’s important for individuals to think of their purchases as a game and not as a replacement for saving or giving. The odds of winning are low, but even a few tickets can add up to thousands of dollars spent in foregone savings.