Lottery might seem like a modern invention of the culture that birthed Instagram and the Kardashians, but its roots are as old as America itself. The drawing of lots to determine ownership and other rights is recorded in early documents, and lottery games were used for centuries by both public and private organizations to raise money for towns, wars, colleges, and public-works projects.
Lotteries are popular with many Americans, and contribute billions to state coffers each year. But it isn’t all about winning big—in fact, the odds of winning are very low, and playing for money is actually a bad investment. Americans spend over $80 billion a year on lotteries, and that money could be better spent building an emergency fund or paying down credit card debt.
The vast majority of state-sponsored lotteries rely on a base of regular players to drive ticket sales. As Les Bernal of the anti-state-sponsored gambling group Pew Charitable Trusts explains, “Lottery revenue is heavily concentrated in a small group of super users.” And as new modes of play emerge, such as credit card-based sales and online games, that reliance is becoming even more entrenched.
To encourage players, lottery managers often offer big prizes that are a combination of entertainment and monetary value. They also promote the games with merchandising deals, featuring popular sports franchises, celebrities and cartoon characters, to generate publicity and boost sales. These marketing tactics help explain why some people have won huge sums over the course of their lives—even after a few short weeks or years of dedicated lottery play.