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The noun, 'lot', can be replaced by 'group' or 'bunch'. There is only one lot. Like you would say "a group of friends is playing", you should say "there is a lot of people here."

The English language disregards how many people are in question in the real life situation. It only regards whether or not the noun is plural or singular. And 'lot' is singular.

However, you could say 'there are lots'.

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