The History of the Lottery

The lottery is big business, raising billions in revenues for state governments each year. The prizes can be substantial — but the chances of winning are extremely low. The prevailing message is that the public should support the lottery because it provides a “painless” source of revenue: People play the lottery voluntarily, and the state reaps the benefits without imposing taxes on the general population.

While casting lots to determine fates has a long history (and several examples in the Bible), modern lotteries have a much more recent beginning. The first public lotteries to distribute prize money were held in the 17th century for a variety of purposes, including paving streets and constructing wharves. When the colonists revolted against the British Crown, the Continental Congress used lotteries to fund the military and other public uses.

State-run lotteries have become ubiquitous throughout the country, and they are one of the most popular forms of gambling. Typically, the state legislates a monopoly for itself; establishes a government agency or public corporation to run the lottery (as opposed to licensing private firms in return for a portion of the proceeds); starts with a small number of relatively simple games; and progressively expands the offerings.

As the game becomes more popular, its advertising focuses on persuading people to spend their money, with the goal of increasing revenues for the sponsoring state. The underlying message is that playing the lottery is a good civic duty, because it provides entertainment and other non-monetary value to participants. While the claim is valid, this approach risks alienating those who do not see the value of participating in the lottery.