The History of Lottery

Lottery is a form of gambling in which people pay a small sum for a chance to win a larger amount of money. Typically, people select a set of numbers, and machines randomly choose winning numbers and award prizes to ticket holders. The casting of lots for determining decisions and fates is an ancient practice, but the organization of public lotteries to raise money has more recent roots. The first recorded lotteries in Europe were held to raise funds for town fortifications and to help the poor.

Although the popularity of lotteries has increased dramatically in recent years, they have a long history, with records of public lotteries dating back to the 15th century. Many towns held lotteries to raise money for a variety of purposes, from repairing buildings and providing aid to the poor to paying for wars and reestablishing borders.

The modern state lottery follows a similar pattern: the state legislates its monopoly; establishes a government agency or public corporation to run the lottery (as opposed to licensing a private company in return for a portion of revenues); begins operations with a modest number of relatively simple games; and, in response to continued pressure for additional revenue, progressively expands the variety of offerings, especially by adding new games.

Because state lotteries operate as businesses with a focus on maximizing revenues, they are necessarily promotional enterprises. As such, they are often at cross-purposes with the general public interest. Lottery critics point to the problems of compulsive gamblers and the regressive impact on lower-income groups, among other concerns.