Throughout history, lotteries have been common ways to raise funds for public projects. The most common kind of lottery is a financial one, where people pay to buy tickets and the winners are determined by drawing lots. The prize amounts range from small amounts to several million dollars or more.

Making decisions and determining fates by lottery is a long-established practice with ancient roots, including several instances in the Bible. However, the first public lotteries to offer prize money in exchange for tickets were recorded in the Low Countries during the 15th century to fund town fortifications and help the poor. The Continental Congress established a public lottery in 1776 to help fund the American Revolution, and Benjamin Franklin sponsored an unsuccessful private lottery to raise money for cannons during the same period.

In modern times, state lotteries typically establish a monopoly for themselves as government agencies; begin operations with a modest number of relatively simple games; and, in order to maintain or increase revenues, introduce new games over time. Moreover, they often develop extensive specific constituencies: convenience store operators (who provide the outlets for sales); lottery suppliers (whose heavy contributions to state political campaigns are reported regularly); teachers (in states where lotteries’ revenues are earmarked for education); state legislators; etc.

While state lotteries have their share of critics, many members of the general public continue to play. One key factor in winning and maintaining this support is the degree to which the lottery can be portrayed as benefiting a particular public good, such as education. In addition, research indicates that, overall, state lotteries draw players and revenues from middle-income neighborhoods, while lower-income populations participate in far fewer state games.