The casting of lots to make decisions and determine fates has a long record in human history, including several instances in the Bible. But the lottery, where people play for money, is of more recent origin. The first recorded public lotteries with prize money were held in the Low Countries in the 15th century, for town fortifications and to help poor families.
The popularity of state lotteries soared in the period after World War II, when states needed to expand their array of social safety net programs without burdening middle-class and working-class taxpayers. The lottery offered a painless source of revenue that voters and politicians alike could embrace.
But this arrangement quickly ran aground on two fundamental problems. First, as state revenues grew, the traditional lottery became boring and less exciting. To maintain interest, lottery commissions launched new games that did not involve waiting weeks or months for a drawing. These innovations, which were accompanied by more extensive and sophisticated advertising campaigns, generated new problems.
One problem was that the public was often misled about the odds of winning the top prizes. Lottery advertisements often present inflated figures for the chances of winning and falsely imply that winners will get rich instantly. They also exaggerate the value of the prizes, assuming that a million-dollar jackpot will be paid in equal annual installments for 20 years (while inflation dramatically reduces the actual value); and they rely heavily on sex appeal and celebrity endorsements to entice players.