The History of Lottery Fundraising

Lotteries are a source of revenue for many state governments. They are also a source of criticism. Typically, the critics allege that lotteries promote addictive gambling behavior and are a tax on low-income people.

Despite these complaints, the lottery industry has remained remarkably popular. About 60% of adults report playing lotteries at least once a year. Most lotto revenues come from middle-income and high-income neighborhoods.

Throughout the history of the United States, lotteries have raised funds for a wide range of public purposes. For example, in 1768, George Washington sponsored a lottery to finance the construction of a road across the Blue Ridge Mountains.

In the early colonial era, several colonies used lotteries to finance local militias, town fortifications, and canals. Several states used lottery proceeds to finance schools, libraries, and other public projects.

Although the history of lotteries is somewhat murky, evidence suggests that the first recorded public lottery was held in Rome during the reign of Augustus Caesar. The earliest known records of lotteries in Europe include a lottery organized by the Roman Emperor Augustus and distributed by wealthy noblemen during Saturnalian revels.

During the 18th century, several colonies used lotteries to fund colleges, libraries, and other public projects. The Commonwealth of Massachusetts, for example, used a lottery to raise money for “Expedition against Canada” in 1758.

Today, state legislatures have established a monopoly over the lottery industry. State officials are pressured to increase revenues. However, critics argue that there is no clear evidence of overall funding of targeted recipients of lottery revenues.