The History of the Lottery

The lottery is a form of gambling in which people purchase chances for winning cash prizes. Unlike most forms of gambling, the outcome of lottery drawings is based entirely on chance. The history of lotteries shows that they are not merely a method of raising money for public causes; they also are popular forms of entertainment.

In an antitax era, state governments are dependent on “painless” lottery revenues, and pressures are constantly on to increase those revenues. Yet, it is difficult for officials at any level to manage an activity from which they profit, especially if the goals and strategies of the industry are continually evolving. Consequently, the establishment of a lottery is often a classic case of piecemeal policymaking without any overall direction or vision. And once a lottery is established, it becomes nearly impossible to get rid of it or even modify it significantly.

While making decisions and determining fates by casting lots has a long record in human history (including several instances in the Bible), it is relatively recent that we have used it for material gain. The first recorded lottery for a material prize was held in 1466 in Bruges, Belgium, with the stated purpose of providing aid to the poor.

Despite their wide appeal, lotteries have significant drawbacks. Among the most significant is that they tend to attract large numbers of specialized constituencies, including convenience store operators (the usual vendors for lottery products); lottery suppliers (heavy contributions by them to state political campaigns are regularly reported); teachers (in states in which the profits from the lottery are earmarked for education); and state legislators, who quickly become accustomed to the extra revenue.