Lottery in Japan (Takarakuji)

Even though I am not a gambler, I am curious how the official lottery programs in Japan work. In the USA, there are various type of lotteries such as the scratch-off lottery and the number-based lottery whose winning tickets are selected every day or so with the machine). Is Japanese lottery the same as the US model? Do winners have an option to choose either the lump sum amount or the annual installment?

Imagine the US lottery being viewed through a microscope. I think they have the scratch off cards, but the bigger ones are where you choose numbers. The biggest one I heard of is 3-oku, but they might be higher by now. There are quite a few that hit $300 mil in the states. I recall the Texas lottery getting over $100 mil regularly.

You'll have much better luck playing pachinko, or playing poker with expats.