The casting of lots for decisions and determining fates through chance has a long record in human history. But the lottery, in which people pay a small sum for a chance to win a big prize, is a relatively recent innovation.
Lotteries began in states with large social safety nets and a concern that they needed to find ways to expand those programs without especially onerous taxes on working people. They also wanted to compete with mob-run gambling games. New Hampshire started the first modern state lottery in 1964. Other states quickly followed suit, and today there are 37 state lotteries operating in the United States.
Lottery commissions marketed the lottery primarily as a way to help fund education and other public services without additional taxes. They emphasized that the proceeds are not just “a little drop in the bucket” but a significant amount of money. The message was a powerful and persuasive one, especially in times of economic stress. But studies show that the popularity of a state’s lottery does not correlate much with its objective fiscal condition.
In fact, state lottery revenues typically grow dramatically after a lottery is introduced, then level off and even begin to decline. Lottery revenues are then maintained by constant introduction of new games, which tend to have lower jackpot amounts and higher odds of winning. In addition, many people play the lottery by choosing numbers they think will be lucky — birthdays, ages, or other personal numbers — which has the effect of diluting the odds of winning by introducing patterns into the number pool.